Richemont Boosts H1 Sales With YNAP Acquisition, Despite Economic Headwinds
Richemont has completed the acquisition of YOOX Net-a-Porter (YNAP) by Mytheresa, with YNAP transferring debt-free at a negative purchase price of half a billion euros, marking a favorable deal. This transaction is expected to boost YNAP's H1 sales and overall performance by relieving debt burdens.
Richemont's H1 sales rose to 10.2 billion euros, a 6% increase from last year. Retail sales grew by 9%, while wholesale and royalty income saw a 1% increase. The Americas saw a 4% decrease in sales due to lower wholesale sales and a weak US dollar. However, Europe, Japan, and the Middle East and Africa regions experienced sales increases. Sales in Asia Pacific were up 14%, led by a 23% increase in China, where Rupert expects higher growth.
The European Commission has cleared a deal between Richemont and Farfetch for the acquisition of YOOX Net-a-Porter. Despite the positive sales growth, Johann Rupert, chairman, attributed the eased growth to inflation, slowing economic growth, and geopolitical tensions. Online sales dropped 7%, and YNAP sales were reclassified as discontinued operations. Richemont's rivals, LVMH and Kering, also posted soft earnings for the current period.
Richemont's H1 sales rose by 6%, driven by retail sales growth and a positive impact from the YNAP acquisition. Despite challenges in the Americas and a drop in online sales, the company remains confident in its long-term prospects, particularly in China.
