Swizz fashion retailer Richemont has reported an increase of 6 per cent in sales to US $ 12,412 million in the fiscal year 2016. While its operating profit dropped 23 per cent, net profit for the year zoomed 67 per cent to US $ 2,495 million. However, the company’s April sales in particular plunged 18 per cent and 15 per cent on a reported and constant rates basis.
Richemont’s gross profit for the reporting year increased by 4 per cent. Operating profit was 23 per cent below as against previous year. Sales in the European market for the year increased by 10 per cent. Asia-Pacific sales accounted for 36 per cent of the Group total. However countries like Hong Kong, Macau and mainland China saw significantly lower sales throughout the reporting year. The American market too stayed subdued throughout the year. In Japan, sales increased during the year, partly reflecting favourable exchange rate effects for tourists.
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Sales through the fashion retailer’s directly operated boutiques and e‑commerce increased by 13 per cent. In the first half of the year, retail sales surged 26 per cent, whereas sales in the second half were 2 per cent higher than the comparative period. In the first half, wholesale sales increased by 4 per cent, while sales in the second half were 6 per cent lower than the comparative period.
