Swiss company Richemont reports record revenue of 20 billion euros in fiscal year 23

Swiss company Richemont reports record revenue of 20 billion euros in fiscal year 23

Richemont, a Swiss-based luxury goods company, posted record revenue of €20 billion in fiscal year 2023 (FY23). This represents a 19% year-on-year increase, driven by a surge in sales in the last quarter, as the Asia-Pacific region resumed growth following the lifting of travel and health restrictions in mainland China.

Directly operated stores outperformed other distribution channels in FY23, contributing 68% of group sales, while online sales combined with in-store sales accounted for nearly 75% of total sales. Growth in the Asia-Pacific zone accelerated, with sales increasing by 6% at actual rates (+1% at constant exchange rates). Other regions, led by Japan and Europe, saw double-digit growth at real and constant exchange rates, the company said in a press release.

Richemont’s FY23 sales reached a record €20 billion, up 19% year-on-year, driven by growth in Asia-Pacific. Operating profit jumped 34% to 5 billion euros, with a margin of 25.2%. Own-operated stores and online sales dominated, while the other segment returned to profit. Overall profit was limited to 301 million euros due to discontinued operations.

Richemont’s other business segment, comprised primarily of fashion houses and accessories, recorded sales of 2.7 billion euros in FY23, up 19% from last year. ‘last year. The segment returned to profit, with fashion and accessories houses contributing 94 million euros to operating profit.

Group operating profit in FY23 reached a record €5 billion and operating margin reached 25.2% of sales. This substantial 34% growth in operating profit, coupled with well-managed working capital, resulted in strong cash flow from operating activities of €4.5 billion. Profit for the year from continuing operations increased by 60% to 3.9 billion euros. However, the overall profit for the year was limited to 301 million euros due to the loss of 3.6 billion euros for the year from discontinued operations.

Fibre2Fashion (DP) Press Office


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