Ynap integration boosts Richemont benefit in first half

Richemont squeezes its purchases. The company, which last June took control of Yoox Net-a-Porter (Ynap), has ended the first six months of the fiscal year with a net benefit of 2.25 billion euros, more than twice as in the same period last year, when it earned 974 million euros.

The corporation attributes the 1.37 billion euros increase of earnings to the revaluation of Yoox Net-a-Porter’s shares before the group, that already had a participation in the e-commerce company, bought it and excluded it from the stock exchange.

Excluding that contribution, Richemont’s profit stood at 875 million euros, a 10% less than during the same period last year, due to the acquisition’s expenses. The company’s revenue also concluded the first semester (ended September 30^th) on a rise. Concretely, Richemont had an income of 6.8 billion euros, a 21% more, thanks to the growth of the jewellery division and the increase to a double digit of the retail channel.

Richemont attributed the increase of sales to the growth of retail and the contribution of the semester’s two purchases

More specifically, retail boosted a 10% up, to the point of reaching 3.55 billion euros, whereas wholesale decreased a 2%, reaching the figure of 2.29 billion euros. The new division of online operators including Yoox Net-a-Porter and the watches e-commerce Watchfinder which it purchased last June, contributed in 959 million euros. Excluding the two purchases of the semester, Yoox Net-a-Porter and the watches e-commerce Watchfinder, sales grew an 8% last year.

As per regions, Asia Pacific continued to be Richemont’s first market, with sales valued in 2.54 billion euros, a 17% higher. Europe, on the other hand, grew 27%, until reaching 2.07 billion euros mainly due to the integration of the two online operators, who have a wide presence in the continent. Discounting Yoox Net-a-Porter and Watchfinder’s intake, sales grew a 1% in Europe.

Richemont is the third biggest luxury conglomerate in the world. The group, which is listed in the Swiss Stock Exchange, generally operates in the watches and jewellery sector, with brands such as Cartier, Van Cleef&Arpels and Jaeger-LeCoultre, although it also counts with fashion brands like for instance Chloé and Montblanc. During the last year, the group has got rid of two firms within that segment: Lancel and Shanghai Tang.