Richemont hints at future M&A as it posts sales rise

Luxury goods powerhouse Richemont, in the midst of a takeover of Yoox Net-a-Porter, on Friday hinted at sales and acquisitions activity as it revealed revenue growth.

Johann Rupert, chairman of Cartier parent Richemont, said that while its businesses are “well-positioned”, its long-term approach “does not preclude it from targeting strategic investments and divestments”.

The firm got the go-ahead a week ago to buy the rest of fashion retailer Yoox Net-a-Porter it does not already own for £2.7 billion.

That deal was seen as a move to bat off competition, with some analysts last year saying Yoox could be targeted by rival retailers.

Richemont saw sales increase 3% to nearly €11 billion in the year to March. It noted good growth in the UK, and strong performances in China and Hong Kong.

However, the firm’s 5% growth in operating profit to €1.8 billion was less than analysts expected.

The company spent €203 million on inventory buybacks of watches.