| Thu 26 Jan 2006, 8:03 | | Richemont Securities AG - Trading Update For The Q |
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RCH
RCH
Richemont Securities AG - Trading Update For The Quarter Ended 31 December 2005
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
TRADING UPDATE FOR THE QUARTER ENDED 31 DECEMBER 2005
Richemont, the Swiss luxury goods group, announces that its sales in the quarter
ended 31 December 2005 increased by 16 per cent at actual exchange rates
compared to the prior year. At constant exchange rates, sales increased by 13
per cent.
Percentage change in sales by business area for the three-month period:
At constant At actual
exchange rates exchange rates
Jewellery Maisons +11% +15%
Specialist watchmakers +16% +19%
Writing instrument +15% +18%
manufacturers
Leather and accessories +10% +13%
Maisons
Other businesses +19% +22%
Total sales +13% +16%
All business areas performed strongly, benefiting from the generally favourable
worldwide economic environment and strong demand for the Maisons" products. The
continued strength of the dollar, particularly when compared to the same period
in 2004, has contributed to the high level of growth at actual exchange rates.
Despite more demanding comparative figures, the rate of growth in underlying
sales increased over the three-month period, with sales in December growing by
21 per cent at actual rates.
Jewellery Maisons
Cartier sales benefited from new product launches - notably the Caresse
d"Orchidees high jewellery line - and the publicity surrounding two important
events during the period. Cartier opened a major new flagship store at Aoyama in
Tokyo and re-opened what has been its historic Parisian home since 1899 at 13
rue de la Paix after a major refurbishment, which lasted 14 months. Van Cleef &
Arpels experienced strong growth, in part generated by the new Pierres de
Caractere high jewellery collection, which was launched in selected markets
during December.
Specialist watchmakers
The Group"s specialist watchmakers all enjoyed good sales with Vacheron
Constantin, Officine Panerai, and IWC reporting particularly good results during
the quarter. Vacheron Constantin benefited significantly from sales linked to
its 250th anniversary celebrations in 2005.
Writing instrument manufacturers
Montblanc saw excellent growth during the quarter, particularly in sales through
its own retail network, which now accounts for one third of the Maison"s
turnover.
Leather and accessories Maisons
Alfred Dunhill reported double-digit sales growth, primarily due to good trading
results in key Asian markets. Lancel opened its second Parisian flagship
boutique on the Champs Elysees in December with sales for the quarter in its
core European market growing by some 7 per cent. Retail sales in France grew by
11 per cent during the quarter.
Other businesses
Excluding Hackett, which was sold in June 2005, from the results in both
periods, sales from this business area would have shown growth of some 62 per
cent overall. Sales at Chloe more than doubled during the period, continuing the
trend seen in the earlier part of the year.
Percentage change in sales by geographic region for the three-month period:
At constant At actual
exchange rates exchange rates
Europe +8% +9%
Japan +16% +14%
Asia-pacific +18% +26%
Americas +18% +26%
Total sales +13% +16%
Europe
Although the rate of growth seen in the quarter was lower than that of the first
six months of the year, this largely reflected the higher comparative figures
reported in respect of the final quarter of calendar 2004. The specialist
watchmakers performed particularly well and there was significant growth in
jewellery sales in Russia and the Middle East.
Japan
Demand in all product areas has continued to be strong in the Japanese market,
with Montblanc showing particularly good growth during the period, albeit from a
relatively low base. Cartier and Van Cleef & Arpels also performed well in this
market.
Asia-Pacific
The Group"s specialist watchmakers reported the highest rate of growth in the
Asia-Pacific region during the quarter, mirroring the strong performance seen
during the first six months of the year. Alfred Dunhill also performed well.
Americas
The Americas also showed good growth during the quarter, notwithstanding the
strong underlying sales trend seen in 2004. The jewellery Maisons, specialist
watchmakers and Montblanc all performed well during the quarter, as did Alfred
Dunhill. Amongst the watchmakers, Panerai"s growth was particularly impressive.
This was due, in part, to the performance of the new boutique in Los Angeles,
which opened in May 2005.
Sales by distribution channel
At actual exchange rates, the Group"s retail sales increased by 16 per cent
overall, whilst wholesale sales increased by 17 per cent.
Press inquiries:
Mr Alan Grieve, Director of Corporate Affairs
Tel: + 41 22 721 3507
Analysts" inquiries:
Ms Sophie Cagnard-Fabrici,
Head of Investor Relations
Tel: + 33 1 5818 2597
Richemont owns a portfolio of leading international brands or `Maisons", which
are managed independently of one another, recognising their individuality and
uniqueness. The businesses operate in five areas: Jewellery Maisons, being
Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of
Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine
Panerai and A. Lange & Sohne; Writing instrument manufacturers - Montblanc and
Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel;
and Other businesses, which includes, specifically, Chloe as well as other
smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent
interest in British American Tobacco.
On 3 January 2006, Compagnie Financiere Richemont SA moved to the Group"s new
head office:
50 Chemin de la Chenaie
1293 Bellevue, Geneva
Switzerland
Tel : +41 22 721 3500
Fax : +41 22 721 3550
www.richemont.com
Date: 26/01/2006 08:03:09 AM Produced by the JSE SENS Department
