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Richemont, the Swiss luxury goods holding company led by South Africa’s richest man Johann Rupert, capped off its fiscal 2024 with robust financial results, fueled by record sales exceeding $20 billion.
Despite ongoing macroeconomic and geopolitical headwinds, sales for the year climbed to €20.6 billion ($22.4 billion) from €19.95 billion ($21.67 billion) in the prior year. This translates to an 8 percent increase at constant exchange rates and a 3 percent rise at actual rates. Gross profit also edged up to €14.04 billion ($15.22 billion) from €13.72 billion ($14.88 billion) in 2023.
Regional strength drives sales growth
Richemont’s sales momentum stemmed from strong performances across all regions. Japan led the pack with a stellar 20-percent increase, bolstered by both domestic demand and resurgent tourism spending. Asia-Pacific followed closely with 10-percent growth, with most markets contributing positively. Europe chipped in with a three-percent rise, supported by resilient domestic spending despite tough year-over-year comparisons.
The Americas saw a five-percent increase, fueled by sequential quarterly improvement and robust domestic demand, with the U.S. now emerging as the group’s largest market. While online retail sales for fashion and accessories Maisons witnessed a slight two-percent decline, the overall retail sector remained healthy, accounting for 69 percent of the group’s total sales. The Jewellery Maisons and Specialist Watchmakers segments, which make up the bulk of retail sales, generated €14.2 billion ($15.4 billion).
Share price soars, boosting Johann Rupert’s wealth
Richemont’s impressive sales results ignited a surge in its share price, jumping 5.9 percent from CHF137.25 ($150.913) on May 16 to CHF145.35 ($159.815) at the time of writing. This propelled Rupert’s net worth above $13 billion, solidifying his position as South Africa’s richest individual.
Rupert’s significant stake in Richemont, comprising 10.18 percent of the company’s capital and granting him 51 percent of voting rights, played a crucial role in his wealth resurgence. Bloomberg estimates the current value of his stake at a staggering $9.29 billion.
Richemont’s strategic prioritization of expanding its retail presence and strengthening its direct-to-consumer channels has demonstrably yielded positive results. This focus has driven solid sales growth across diverse regions and product segments, solidifying the company’s position in the luxury goods market.
