In February this year, there were rumors in Europe that the world’s largest luxury group Louis Vuitton Moet Hennessy (LVMH), was considering a takeover of its rival Richemont Group after Swiss newspaper Finanz und Wirtschaft hinted in a story that the two luxury giants were about to commence talks.
However, South African billionaire Johann Rupert, chairman of Richemont Group, has put to rest the acquisition rumors and said that the company was not for sale.
Rupert dismissed the possibility of a sale during Richemont’s results briefing for the 2022-23 financial year.
In a conference call with journalists and analysts, he insisted that Richemont is not for sale and called the rumor of a sale to LVMH “erroneous.”
Richemont Group recently published its latest full-year financial report, which shows a 21-percent growth in jewelry sales as pandemic restrictions ease in Asia.
For the fiscal year ending March 31, sales in the jewelry sector totaled €13.43-billion ($14.6-billion).
The division’s directly controlled shop network and online sales accounted for 83% of total revenues. As a result, operating profit grew by 23 percent.
Richemont, headquartered in Switzerland, owns luxury labels such as Baume & Mercier, Buccellati, Cartier, Montblanc, Vacheron Constantin, and Van Cleef & Arpels.
The company’s total sales increased by 14 percent, while the expert watchmaker’s sector increased by eight percent.
Richemont representatives said in a statement that the increased sales were due to improved trading circumstances in China and solid performances in Japan, Europe, and the United States.
“The group’s three jewelry maisons [brands] achieved double-digit improvement in jewelry and watched [sales],” the statement said.
“All iconic collections outperformed. This strong performance was also broad-based across all jewelry maisons, price points, regions, and distribution channels.”
The statement continued: “Economic volatility and political uncertainty look set to remain features of the trading environment. The group will therefore seek to maintain the necessary agility to manage fluctuating levels of demand.”
Rupert, worth $13.8 billion according to the Bloomberg Billionaires Index, derives most of his fortune from Cie Financiere Richemont, a publicly traded luxury goods manufacturer, and retailer and the world’s largest luxury watchmaker.Â
