Strong performance for the six-month period ended 30 September 2022

11 NOV 2022

Ad hoc announcement pursuant to art. 53 LR

Group highlights

  • Strong sales and operating profit from continuing operations of € 9.7 billion and € 2.7 billion, respectively
  • Agreement with FARFETCH and Alabbar to sell a controlling interest in YNAP to create a neutral industry-wide platform and advance the realisation of Maisons’ Luxury New Retail vision; YNAP business reclassified to ‘discontinued operations’
  • Continued progress on sustainability objectives: 10% energy reduction plan implemented in offices and boutiques across Europe; on track to source 100% renewable electricity globally before end of 2025

Financial highlights

  • Sales up by 24% at actual exchange rates and 16% at constant exchange rates, with double-digit increases at actual exchange rates across all business areas and channels
  • Improved momentum in Asia Pacific with sales up 3% at actual rates; double-digit increases in all other regions
  • Growth momentum led by retail, up 30% at actual exchange rates and 21% at constant exchange rates, representing 67% of Group sales
  • Operating profit from continuing operations increased by 26%, delivering improved operating margin of 28.1% driven by:
    • Jewellery Maisons achieving 24% sales growth at actual exchange rates (+16% at constant rates) and delivering a 37.1% operating margin
    • Specialist Watchmakers expanding sales by 22% at actual exchange rates (+13% at constant exchange rates) and achieving 24.8% operating margin
    • Other’ business area (predominantly F&A Maisons) growing 27% at actual exchange rates (+19% at constant exchange rates) and generating a 4.3% operating margin
  • 40% increase in profit for the period from continuing operations to € 2.1 billion; € 2.9 billion loss from discontinued operations primarily resulting from € 2.7 billion non-cash write-down of YNAP net assets
  • Strong net cash position of € 4.8 billion, with € 1.5 billion cash flow generated from operating activities, targeted inventory build-up and increased dividend

Key financial data (unaudited)

Six months ended 30 September


2021 represented*



€ 9 676m

€7 787m


Gross profit

€6 667m

€5 260m


Gross margin



+140 bps

Operating profit

€2 723m

€2 168m


Operating margin



+30 bps

Profit for the period from continuing operations

€2 105m

€1 503m


Loss for the period from discontinued operations

€(2 871)m


(Loss)/profit for the period


€1 249m

Earnings per ‘A’ share/10 ‘B’ shares, diluted basis



Cash flow generated from operating activities

€1 540m

€1 781m


Net cash position

€4 763m

€3 153m

* Prior-year period comparatives have been represented as YNAP results are presented as ‘discontinued operations’

Chairman’s commentary

Overview of results

In the first six months of the financial year, Richemont reported another set of strong results as the momentum seen in the first quarter of the financial year continued into the second quarter. Sales from continuing operations increased by 24% to € 9.7 billion and operating profit from continuing operations by 26% to € 2.7 billion.

Compared to the prior-year period, double-digit sales increases were recorded, at actual exchange rates, across all business areas, channels and regions excluding Asia Pacific where sales grew by 3%. Growth was led by the retail channel which, together with the online channel, contributed 73% of Group sales.

In terms of business areas, all grew profitably, with the highest growth rates in sales at +27%, recorded by the ‘Other’ segment mostly composed of Fashion & Accessories Maisons, and the highest profitability at 37.1%, generated by the Jewellery Maisons.

With a 24% sales growth overall and higher sales in all regions and distribution channels, our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, reaffirmed their leading position. To further support their strong development, manufacturing sites are being expanded, operational teams reinforced, and communication initiatives intensified. Their superior growth was driven by the retail channel, which generated over three quarters of the Maisons’ sales.

Our Specialist Watchmakers expanded sales by 22%, with all Maisons, regions and distribution channels recording growth, a reflection of their strong appeal and the successful ‘iconisation’ of their collections. The Specialist Watchmakers also benefited from an overall growing interest for high quality watches across generations. Three of the Maisons are now of very significant scale, approaching one billion euros in annual sales. Of note is the continued shift in demand towards directly operated stores, both physical and online, and mono-brand franchise stores. Sales in these branded environments accounted for over 70% of the Specialist Watchmakers’ sales. Their operating margin strengthened to 24.8%.

The Group’s ‘Other’ business area, which now includes Watchfinder, saw nearly all Maisons post sharp sales growth across channels and regions. Creativity and execution drove a 27% sales growth and improved profitability of € 56 million. Chloé, Montblanc and Peter Millar, including G/FORE, contributed most to the sales increase. Delvaux generated the sharpest growth rate in sales. We are carefully nurturing this promising Maison for the long term.

At Group level, operating profit and operating margin from continuing operations rose to € 2.7 billion and 28.1%, respectively. Profit for the period from continuing operations increased to € 2.1 billion, benefiting from a strong operating profit and lower net finance costs. The € 2.9 billion loss from discontinued operations reflected the combined result of YNAP for the six-month period and the € 2.7 billion non-cash loss on remeasurement of its net assets to fair value, based on current market data, as a result of the transfer to ‘Held for Sale’. At € 4.8 billion at the end of September 2022, our net cash position remained solid.

Our Luxury New Retail (‘LNR’) partners

The agreement for Farfetch and Alabbar to acquire 47.5% and 3.2% of YNAP, respectively, leaving Richemont holding 49.3%, will realise my long-standing goal of making YNAP a neutral industry-wide platform, with no controlling shareholder. In exchange, Richemont will receive Farfetch shares, expected to represent 12-13% of Farfetch’s issued share capital, to further align interests. Subject to a number of conditions, including the receipt of certain antitrust approvals, the initial stage of the transaction is expected to complete before the end of calendar year 2023. By that point, Richemont Maisons will adopt Farfetch's technology to create the best ‘route to market’ and realise their ‘Luxury New Retail’ vision. We will strive to achieve efficiency, flexibility and speed in addressing our clients’ needs, getting our products to the right place, at the right time, in a seamless manner. Meanwhile, YNAP will adopt Farfetch Platform Solutions to accelerate the shift towards a hybrid model that will significantly enhance its prospects.

Annual General Meeting and Board changes

At the Annual General Meeting (‘AGM’) in September 2022, two valued and long-serving non-executive directors, Ruggero Magnoni and Jan Rupert, stepped down from the Board. They parted with our warmest wishes and I wish to thank them again for their immense contributions to the development of Richemont. The Board’s size has been reduced to 16, with female representation reaching 31%. We expect this ratio to increase further as the Board’s rejuvenation continues to further address age, tenure, skills and representation from the Americas and Asian regions.

We also announced that the process has been launched to select the next Group’s external auditor. Given the complexity of the project, with Richemont being present in over 36 locations, we expect the process to be finalised by late 2024, in time for the 2025 AGM and our shareholders’ approval.

Also at this year’s AGM, a resolution allowing for ‘A’ shareholder representation was voted on for the first time, at the request of a shareholder. This is allowed for under Swiss law, yet had never previously been requested. The Board nominated Wendy Luhabe to this role. She was elected by 84% of the ‘A’ shareholders casting their votes and elected to the Board with 98% supportive votes. Two other proposed items were rejected. The notion of a divided board representing different shareholder factions is alien to our concept of a collegial board, a philosophy which has prevailed since Richemont’s foundation 34 years ago. All non-executive directors have been elected by the majority of ‘A’ shares cast, and by a considerable margin. They all represent ‘A’ and ‘B’ shareholders’ interests.

I would like to heartily thank our long-term shareholders for their overwhelming support. Having dedicated much of my working life to the Group’s development, I am deeply grateful for their loyalty, trust, and support. We can now continue planning for the medium and long term, taking brave actions when needed, to create value for our shareholders, communities and colleagues.


Richemont has a long-standing commitment to doing business responsibly, striving to create benefits for all of its stakeholders. We are currently rolling out a strengthened sustainability roadmap to drive further environmental and social progress within Richemont and its stakeholder community, including suppliers and partners. We have updated key internal policies to ensure that our respect for human rights is embedded into our decision-making processes and over the six-month period have engaged with several NGOs to progress on our revised Human Rights Strategy as well as our biodiversity, climate and circularity policies.

Regarding the topical matter of energy savings, we aim to reach a 10% energy saving on gas and electricity in our offices and boutiques across Europe over the next six months compared to the prior-year period. We are also well positioned to achieve our objective to source 100% renewable electricity ahead of our initial target of the end of calendar 2025.


As I conclude my comments, I would like to reiterate my tribute to my personal mentor, the late Maître Jean-Paul Aeschimann, who served with unparalleled distinction as Richemont’s Deputy Chairman for 22 years, from the Group's foundation in 1988 till 2010. Following his advice, we adopted the collegial board model, where all directors serve the interest of all shareholders. That has stood the test of time. His contribution to Richemont was immense and he is sorely missed.

I would also like to thank all the teams at Richemont for their commitment, creativity and operational excellence that have underpinned our strong performance. All our business areas have performed strongly. We have strengthened our sustainability operations and further heightened our sustainability ambition. We have also made major strides in our digital transformation.

It is highly uncertain how the political, economic and social landscapes will evolve in Europe and in our other key markets. We only know that we will likely face volatile times ahead as central banks seek to rein in inflation while governments try to manage severe cost of living pressures. At Richemont, we will continue to be guided by our values, seeking to build value for the long term in a sustainable and responsible manner, not seeking short-term, expedient solutions. The Group is in the fortunate position of being in good health, with a clear strategy, highly desirable and enduring creations, strong Maisons, professional teams and a robust balance sheet. These assets will enable Richemont to weather uncertain times and draw upon strength in demand, allowing us to look to the future with a mix of vigilance and confidence.

Johann Rupert

Compagnie Financière Richemont SA

Financial review

Any long form references to Hong Kong, Macau and Taiwan within this Company Announcement are Hong Kong SAR, China; Macau SAR, China; and Taiwan, China respectively.

Following the 24 August 2022 announcement of an agreement, subject to a number of conditions, including the receipt of certain anti-trust approvals, to sell a controlling stake in YOOX NET-A-PORTER (YNAP), the results of YNAP for the period ended 30 September 2022 are presented as ‘discontinued operations’. Prior-year period comparatives are represented accordingly. Unless otherwise stated, all comments below relate to the results of the continuing operations. The results of Watchfinder & Co. (‘Watchfinder’) are now reported within the ‘Other’ business area.


In the first six months of the year, Richemont reported a strong performance with sales from continuing operations increasing by 24% at actual exchange rates and 16% at constant exchange rates.

This performance reflected double-digit sales growth in all regions excluding Asia Pacific where sales grew by 3% at actual exchange rates as the impact of recurring temporary boutique closures in mainland China was offset by robust performances in other Asian markets, in addition to positive foreign exchange impacts. In constant currencies, sales in the Asia Pacific region returned to growth during the second quarter but contracted by 5% for the six-month period to September 2022. In the Americas and Europe, the solid sales growth seen in the first quarter of the financial year continued during the second quarter, with six-month sales rising by 40% and 45% respectively, at actual exchange rates. European sales, in particular, benefited from the resumption of international tourism, primarily from North American and Middle Eastern clients.

Sales through the Group’s directly operated stores network outperformed the other sales channels, with sales up by 30% during the period, driven by growth in all regions. Online retail sales, now excluding sales made by YNAP, grew by 19% while wholesale sales increased by 14%.

All business areas enjoyed double-digit sales increases compared to the prior-year period. Sales at the Jewellery Maisons and Specialist Watchmakers grew by 24% and 22% respectively, reflecting growth in all regions and distribution channels. The ‘Other’ business area, now including Watchfinder, delivered the largest relative sales growth, of 27%. ‘Discontinued operations’, comprised of YNAP, grew sales by 11%.

Further details on sales by region, distribution channel and business area are given in the Review of Operations.

Gross profit

Year-on-year, gross profit rose by 27% to € 6 667 million, with the corresponding gross margin increased to 68.9% of sales.

This 140 basis point gross margin increase is mainly driven by price increases, a more favourable geographical sales mix and a further client shift towards retail. All these positive factors more than offset an increase in raw materials cost and inflationary pressures throughout the supply chain.

Operating profit

Increases in sales and gross profit and the Group’s ongoing focus on cost control have delivered a six-month operating profit of € 2 723 million, up 26% over the prior-year period. Operating margin rose to 28.1%.

Operating expenses grew by 28% over the prior-year period, slightly above the 24% sales progression rate. The year-on-year 27% increase in selling and distribution expenses partially reflected higher retail sales and the growth of the Group’s retail operations. As a percentage of sales, they amounted to 22.8% of sales in the current period compared to 22.3% a year ago. Strategic investments in communication led to a 33% increase in expenses, representing 8.3% of sales, compared to a low of 7.7% in the prior-year period.

The 24% increase in administrative expenses partially reflected a relatively stronger Swiss franc as well as increased logistics and IT-related expenses.

Profit for the period

Profit for the period from continuing operations rose to € 2 105 million, an increase of € 602 million, or 40%, compared to the prior-year period. Increased operating profit was partially offset by net finance costs of € 202 million (compared to € 382 million in the prior-year period). This charge included non-cash fair value losses of € 163 million (net) on financial instruments, including € 66 million on the Farfetch convertible note and Farfetch China option, offset by net foreign exchange gains on monetary items of € 95 million resulting notably from a stronger US dollar versus the Swiss franc.

The result from discontinued operations represents the operating result of YNAP for the six-month period in addition to the € 2.7 billion non-cash charge on transfer of YNAP net assets to ‘Held for Sale’ at 30 September. This charge depends on several variables, mainly the listed share price of Farfetch Limited and the US dollar/Euro foreign exchange rate at the reporting date. It also takes into account the expected fair value of the shareholding that the Group will retain in YNAP. This charge is therefore subject to change before the publication of the Group’s annual consolidated financial statements for the year ending 31 March 2023.

Earnings per share (1 ‘A’ share/10 ‘B’ shares) amounted to € (1.337) on a diluted basis. Excluding YNAP, diluted earnings per share (1 ‘A’ share/10 ‘B’ shares) from continuing operations were € 3.665.

To comply with the South African practice of providing headline earnings per share (‘HEPS’) data, the relevant figure for headline earnings for the period ended 30 September 2022 was € 1 930 million (2021: € 1 235 million). Basic HEPS for the period was € 3.396 (2021: € 2.181); diluted HEPS for the period was € 3.357 (2021: € 2.150). Further details regarding earnings per share and HEPS, including an itemised reconciliation, may be found in note 10.3 of the Group’s condensed consolidated interim financial statements.

Cash flow

Cash flow generated from operating activities, including YNAP, amounted to € 1 540 million compared to € 1 781 million in the prior-year period. The increase in operating profit for the period was partly offset by additional investments in working capital, including in precious materials inventories as well as higher levels of receivables reflecting strong sales growth during the period.

At € 314 million, net investment in property plant and equipment was 46% higher than in the prior period. The largest portion of the capital expenditure was focused on the renovation and expansion of the Group Maisons’ directly operated stores network, the strengthening of manufacturing operations at the Jewellery Maisons as well as further investments in technology.

The 2022 dividend of CHF 2.25 per share (1 ‘A’ share/10 ‘B’ shares), and the exceptional dividend of CHF 1.00 per share (1 ‘A’ share/10 ‘B’ shares) were paid to shareholders and to South African Depository Receipt holders, net of withholding tax, in September. The overall dividend cash outflow in the period amounted to € 1 851 million.

Proceeds from the exercise of share options by executives and other hedging activities during the period under review amounted to a net cash inflow of € 116 million.

Balance sheet

At 30 September 2022, the assets and liabilities of YNAP are classified as ‘Assets of disposal groups held for sale’ and ‘Liabilities of disposal groups held for sale’, respectively. The remainder of the balance sheet reflected only the assets and liabilities of the continuing operations. The prior-year period has not been restated.

Inventories of € 7 027 million were € 1 067 million higher than at 31 March 2022 excluding the impact of the reclassification of YNAP inventories, or € 72 million lower including that impact. Inventory rotation improved to 15.5 months (September 2021: 16.0 months).

The Group’s gross cash position at 30 September 2022 amounted to € 10 718 million while the Group’s net cash position stood at € 4 763 million, a € 488 million decrease compared to the position at 31 March 2022. The variation is largely explained by the dividend cash outflow. The Group’s net cash position included highly liquid, highly rated money market funds, short-term bank deposits and short-duration bond funds, primarily denominated in Swiss franc, Euro and US dollar as well as external borrowings, including € 6 billion Euro denominated corporate bonds.

Shareholders’ equity represented 46% of total equity and liabilities compared to 50% at 31 March 2022.

Sale of a controlling interest in YNAP

During the period, the Group reached an agreement with Farfetch and Alabbar, which is subject to a number of conditions, including the receipt of certain anti-trust approvals, to sell a controlling interest in YNAP. In the initial stage, Farfetch and Alabbar will acquire 47.5% and 3.2%, respectively, of YNAP’s share capital, making YNAP a neutral platform with no controlling shareholder. Upon completion of the sale, Richemont will receive Farfetch Class A ordinary shares, expected to represent 12-13% of the issued share capital of Farfetch. Richemont will also receive USD 250 million (expected to be settled in Farfetch Class A ordinary shares) on the fifth anniversary of completion of the initial stage of the transaction. Alabbar, Richemont and YNAP’s longstanding partner in the Middle East, will acquire a 3.2% interest in YNAP in exchange for its shares in the joint venture with YNAP in the Gulf Cooperation Council region. The initial stage of the transaction is currently expected to complete before the end of calendar year 2023.

The potential second and final stage of the transaction provides for Farfetch to increase its ownership of YNAP share capital to 100% through a put and call option mechanism.

YNAP’s performance

YNAP’s performance is shown under ‘Results from discontinued operations’ which saw sales grow by 11% at actual exchange rates and by 4% at constant exchange rates. Growth was led by Net-A-Porter and Mr Porter, with marked performances in the UK and the US. YOOX revenues grew mid-single digit, expanding its marketplace offering with the introduction of the Home and Art category. The Outnet, which launched in the US in May, was impacted by reduced product availability and increased competition. FengMao revenues grew at high double digits compared to the prior-year period.

YNAP continued the localisation of its online stores with several important launches due by December 2022, notably in Italy, Japan and South Korea. It also announced an industry collaboration with online retailers ABOUT YOU and ZALANDO to develop a bespoke learning platform to support their brand partners in setting science-based climate targets, which in turn will support YNAP’s own scope 3 reduction targets.

Review of operations

This part is only available in the full PDF which can be downloaded above.


This part is only available in the full PDF which can be downloaded above.


The results will be presented via a live audio webcast on 11 November 2022, starting at 9.30 a.m. (CET). The direct link is available from 7.00 a.m. (CET) at The presentation may be viewed using a mobile device or from a browser.

Statutory information

The Richemont 2022 Interim Report will be available for download from the Group’s website from 18 November 2022 at 

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‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332). South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg Stock Exchange, the Company’s secondary listing, (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).

The closing price of the Richemont ‘A’ share on 30 September 2022 was CHF 94.28 and the market capitalisation of the Group’s ‘A’ shares on that date was CHF 49 214 million. Over the preceding six-month period, the highest closing price of the ‘A’ share was CHF 122.35 (5 April) and the lowest closing price was CHF 91.76 (20 May).

About Richemont

At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside online distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.

Richemont operates in three business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar including G/FORE, Purdey, Serapian as well as Watchfinder & Co. In addition, Richemont operates NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division.


This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumers traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers’ desire to travel to our retail stores. International conflicts or wars, including resulting sanctions and restrictions on importation and exportation of finished products and/or raw materials, whether self-imposed or imposed by international countries, non-state entities or others, may also impact these forward-looking statements. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group's control. Richemont does not undertake to update, nor does it have any obligation to provide updates of, or to revise, any forward-looking statements.