Richemont demonstrates sustained resilience for the six-month period ended 30 September 2024. In the first six months of the financial year, Richemont demonstrated sustained resilience, against a challenging macroeconomic and geopolitical backdrop, supported by ongoing investment in our distribution and manufacturing capacities.
Benefitting from the Group’s balanced geographic mix and continued strength at our Jewellery Maisons, sales from continuing operations were stable at constant exchange rates (-1% at actual exchange rates) at € 10.1 billion. Operating profit from continuing operations came in at € 2.2 billion, down 12% at constant exchange rates (-17% at actual exchange rates), largely reflecting the impact of the decline in sales at our Specialist Watchmakers, a slight gross margin erosion and ongoing investments for our Maisons’ long-term growth.
The Group recorded very solid sales progress in most regions, led by the Americas and Japan in value, which grew 10% and 32% respectively at actual exchange rates. Both Europe and Middle East & Africa also posted robust growth. The Group’s balanced regional mix, building on several growth engines, contributed to offsetting the 19% decrease in Asia Pacific sales, led by China. Direct to client sales rose further, now representing 76% of Group sales.
With 2% sales growth overall (+4% at constant exchange rates), our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, continued to show strength and gain share. Limited price increases over recent months were not sufficient to fully offset raw material cost increases, notably that of gold. Our Jewellery Maisons nonetheless delivered a € 2.3 billion operating result and a corresponding 32.9% operating margin.
As already alluded to at our last Annual General Meeting of shareholders in September, the global watch market is experiencing a slowdown, particularly in China, which is affecting all watchmaking brands globally, with the high-end segments showing greater resilience.
This highlights the need for discipline and caution regarding overproduction and underscores the importance of adapting to changing market conditions, which will ultimately contribute to maintaining higher product desirability. Looking back at the first half of our fiscal year, our Specialist Watchmakers Maisons were affected in different ways, influenced by their regional exposure and product mix.
Largely reflecting their significant exposure to the Asia Pacific region, our Specialist Watchmakers recorded a 17% year-on-year sales decline (-16% at constant exchange rates) to € 1.7 billion. As a consequence of lower sales on fixed operating costs and a strong Swiss franc, operating result amounted to € 160 million, corresponding to a 9.7% operating margin.
Sales at our, other- business area increased by 4% at both actual and constant exchange rates. Sales at our Fashion & Accessories Maisons were 2% higher than the prior-year period, driven by Alaïa’s and Peter Millar’s continued outperformance. Overall, the ‘Other’ business area recorded a € 52 million operating loss, € 23 million of which for the F&A Maisons.
At Group level, operating profit from continuing operations was also significantly impacted by negative foreign exchange movements, but still delivered a 21.9% operating margin. Profit for the period from continuing operations decreased to € 1.7 billion.
The € 1.3 billion loss from discontinued operations reflected the combined result of YOOX NET-A-PORTER (‘YNAP’) for the six-month period and the € 1.2 billion non-cash write-down on the revaluation of YNAP’s net assets, classified as ‘held for sale’, to its fair value, following the agreement signed with Mytheresa in October.
Importantly, amidst ongoing macro uncertainty, our net cash position remained solid at € 6.1 billion on 30 September 2024. This excludes YNAP’s net cash position of € 0.1 billion, presented as assets and liabilities of disposal group held for sale.
