Johann Rupert’s Richemont reports double-digit surge in Q3 sales above $6.4 billion

South African billionaire Johann Rupert’s luxury goods manufacturer Compagnie Financiere Richemont (Richemont) has reported a 32-percent increase in sales in the third quarter of its current financial year, 2022.

Thanks to the boost that it received from consumer purchases in the festive season, the Swiss luxury goods holding posted revenues of €5.66 billion ($6.42 billion) in the three month period between October and December 2021.

The revenue posted in the third quarter of Richemont’s current financial period represents an increase of 32 percent.

When compared to the €4.19 billion ($4.75 billion) that Richemont posted in the corresponding quarter last year, sales rose by 32 percent versus the prior-year period driven by double-digit increases in all regions, channels and business areas in a relatively supportive economic climate.

The robust result in the third quarter saw the company’s sales over the nine-month period to December rise by 50 percent compared to the prior-year period, a further improvement over the strong performance that it posted in the first six months of the financial year.

A review of the company’s performance revealed that the Americas led its growth, with sales up by 55 percent, followed by Europe and the Middle East and Africa, where sales grew by 42 and 30 percent, respectively.

Japan and the Asia Pacific saw sales increase by 22 and 18 percent, respectively, while China consolidated at a high level of seven percent.

Meanwhile, the company’s brick-and-mortar retail stores generated the strongest channel performance thanks to the recovery of business and economic activities, with sales up by 45 percent.

Online retail and wholesale segments also rose by 19 and 14 percent, respectively.

As a result, the group’s net-cash position as of Dec. 31, 2021 amounted to €4.9 billion ($5.56 billion), up from €2.9 billion ($3.29 billion) in the previous year.

In reaction to the news, Richemont’s shares on the Johannesburg Stock Exchange surged by 8.26 percent, as investors and traders on the local bourse scrambled for shares in the holding.

As of press time, Jan. 19, shares in the Swiss luxury good holding were trading at R246.67 ($16.02) per share.