| Thu 15 Jan 2004, 8:48 | | RICHEMONT SECURITIES AG - TRADING STATEMENT |
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RICHEMONT SECURITIES AG - TRADING STATEMENT
Richemont Securities AG
(Incorporated in Switzerland)
JSE Code: RCH
ISIN: CH0013157380
("Richemont" or "the Group")
TRADING STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2003
Richemont, the Swiss luxury goods group, announces that its sales for the
quarter ended 31 December 2003 have grown by 4 per cent in constant currency
terms over the comparative period in the prior year. At actual exchange rates,
sales for the quarter declined by 4 per cent, the growth in sales in local
currency terms being adversely impacted by the continuing strength of the euro
against the yen and, in particular, the dollar. The growth in constant currency
terms of 4 per cent reflected particularly good trading in December, with sales
at constant exchange rates growing by 10 per cent during the month.
Percentage change in sales by geographic region for the three-month period
At At actual
constant exchange
exchange rates
rates
Europe - 3 % - 5 %
Japan - 4 % - 10 %
Asia-Pacific + 20 % + 4 %
Americas + 18 % 0 %
Total sales + 4 % - 4 %
In Europe, the weak economic climate and the low level of tourist numbers have
resulted in sales being below the prior year"s level in the important markets of
France, Italy and Germany. This was offset, however, to some extent by good
performances in the United Kingdom and Spain as well as in Russia, where the
Group has recently established its own distribution organisation. In Japan,
despite the positive impact of Cartier"s new Ginza boutique, sales were below
the prior year"s level in local currency terms. Sales growth in Asia-Pacific
markets reflects the relatively strong economies in the region and a marked
increase in travel, in the case of Hong Kong particularly from mainland China.
Sales in the United States were buoyed by the improving economic situation
there. The growth in sales in dollar terms was, however, entirely offset by the
significant weakening of the dollar against the euro.
A similar pattern of growth was seen in terms of both retail and wholesale sales
during the period, each channel growing by 4 per cent at constant rates and
reflecting a decline of 4 per cent at actual exchange rates.
Percentage change in sales by business area for the three-month period
At constant At actual
exchange exchange
rates rates
Jewellery maisons + 2 % - 7 %
Specialist watchmakers + 11 % + 4 %
Writing instrument + 9 % + 2 %
manufacturers
Textile, leather and - 3 % - 10 %
other businesses
Total sales + 4 % - 4 %
Sales of the Group"s jewellery maisons - Cartier and Van Cleef & Arpels - grew
by 2 per cent at constant exchange rates. Cartier, the Group"s largest business,
reported modest growth during the quarter, reflecting the importance to the
brand of the depressed European and Japanese markets. Cartier"s new product
lines, which were launched during the quarter, contributed to a good performance
in the month of December. Van Cleef & Arpels reported good growth during the
period, albeit from a smaller base.
The Group"s specialist watchmakers, Jaeger-LeCoultre, Piaget, Baume & Mercier,
IWC, Vacheron Constantin, A. Lange & Sohne and Officine Panerai, enjoyed a
strong quarter, with all maisons reporting growth in constant currency terms.
In terms of the Group"s writing instrument manufacturers, Montblanc reported
good sales growth during the quarter, benefiting from new product launches and
the diversification of its product lines as well as the contribution from its
flagship store on Madison Avenue in New York, which opened in October.
Within textile, leather and other businesses, growth in sales at constant
exchange rates at Alfred Dunhill and Chloe was offset by continuing weakness at
Lancel, whilst Hackett"s performance was in line with the prior year"s level.
In addition to its luxury goods business, Richemont holds a 19.4 per cent
interest in the ordinary share capital of British American Tobacco, the world"s
second largest tobacco company. This percentage has increased marginally as a
consequence of the buy-back of its own shares by British American Tobacco and
the consequent reduction in the number of ordinary shares in issue.
