Highlights
Compared to the third quarter ended 31 December 2020:
- Strong sales, up by 32% at constant exchange rates and by 35% at actual exchange rates
- Double-digit sales growth across all regions, channels and business areas
- Strongest performance from the Americas and Europe, rebalancing regional sales mix
- Retail and online retail, a combined 78% of Group sales, driving growth
- Excellent performance from all three business areas:
- Jewellery Maisons, with sales growth of 38% at constant exchange rates (+41% at actual exchange rates)
- Fashion & Accessories Maisons, with sales growth of 37% at constant exchange rates
(+40% at actual exchange rates), sustained by Chloé, Montblanc and Peter Millar
- Specialist Watchmakers, with sales growth of 25% at constant exchange rates (+29% at actual exchange rates)
Compared to the third quarter ended 31 December 2019:
- Continued sequential quarterly growth acceleration, with third quarter sales up by 38% at constant exchange rates and 36% at actual exchange rates
- Pre-pandemic levels substantially exceeded, with sales up double digits across all regions and business areas, as well as online and offline retail channels
- Outstanding performance of the Americas, Asia Pacific and Middle East and Africa; Europe and Japan resuming growth, up double digits
- Performance led by the Jewellery Maisons (+57% and +55% at constant and actual rates respectively) with other business areas growing at or close to 20%
October-December
|
2021
|
2020
|
2019
|
% change 2021 vs 2020
|
% change 2021 vs 2019
|
|
€m
|
€m
|
€m
|
constant rates
|
actual rates
|
constant rates
|
actual rates
|
By region
|
|
|
|
|
|
|
|
Europe
|
1 410
|
982
|
1 263
|
+42%
|
+44%
|
+12%
|
+12%
|
Asia Pacific
|
2 128
|
1 729
|
1 429
|
+18%
|
+23%
|
+47%
|
+49%
|
Americas
|
1 333
|
841
|
874
|
+55%
|
+59%
|
+59%
|
+53%
|
Japan
|
389
|
335
|
341
|
+22%
|
+16%
|
+23%
|
+14%
|
Middle East and Africa
|
398
|
299
|
249
|
+30%
|
+33%
|
+65%
|
+60%
|
|
|
|
|
|
|
|
|
By distribution channel
|
|
|
|
|
|
|
Retail
|
3 400
|
2 288
|
2 212
|
+45%
|
+49%
|
+56%
|
+54%
|
Online retail
|
1 025
|
841
|
747
|
+19%
|
+22%
|
+40%
|
+37%
|
Wholesale & royalty income
|
1 233
|
1 057
|
1 197
|
+14%
|
+17%
|
+4%
|
+3%
|
|
|
|
|
|
|
|
|
By business area
|
|
|
|
|
|
|
|
Jewellery Maisons
|
3 343
|
2 366
|
2 162
|
+38%
|
+41%
|
+57%
|
+55%
|
Specialist Watchmakers
|
977
|
758
|
818
|
+25%
|
+29%
|
+20%
|
+19%
|
Online Distributors
|
785
|
668
|
670
|
+15%
|
+18%
|
+19%
|
+17%
|
Other
|
610
|
436
|
522
|
+37%
|
+40%
|
+19%
|
+17%
|
Inter-segment eliminations
|
(57)
|
(42)
|
(16)
|
|
|
|
|
Total
|
5 658
|
4 186
|
4 156
|
+32%
|
+35%
|
+38%
|
+36%
|
Review of trading in the three-month period ended 31 December 2021 versus the prior-year period, at constant exchange rates
Sales rose by 32% versus the prior year period driven by double-digit increases in all regions, channels and business areas, in a relatively supportive economic environment.
The Americas led the growth with sales up by 55%, followed by Europe and Middle East and Africa, where sales grew by 42% and 30%, respectively. Japan and Asia Pacific saw sales increase by 22% and 18%, respectively, with China consolidating at a high level of +7%. Regional sales mix continued to be further rebalanced with Asia Pacific accounting for 38% of Group sales, followed by Europe and the Americas, at 25% and 23% of Group sales, respectively. Japan and Middle East and Africa each contributed 7% of Group sales.
Retail generated the strongest channel performance, with sales up by 45%, followed by online retail sales up by 19% and wholesale sales up by 14%. Direct sales to consumers have further strengthened to reach 78% of Group sales compared to 75% in the prior year period.
The Jewellery Maisons were the strongest performing business area, with sales increasing by 38%, immediately followed by the Group's Other business area (primarily our Fashion & Accessories Maisons) with sales up by 37%. The Specialist Watchmakers also performed markedly well with sales increasing by 25% while the Online Distributors posted 15% sales growth.
Review of trading in the three-month period ended 31 December 2021 versus the three-month period ended 31 December 2019, at constant exchange rates
On a two-year basis, sales exceeded pre-Covid levels across all regions, channels and business areas.
The Americas, supported by strong local demand, saw sales rise by 59%, followed by Asia Pacific with a 47% sales increase. This commendable performance was driven by double-digit growth in most locations, notably in Australia, China and South Korea, notwithstanding renewed temporary public health protection measures. Europe, with sales up by 12%, reflected solid domestic sales across the region that more than compensated for lower tourism spend compared to two years ago, notwithstanding clients from the Middle East and the USA progressively returning to Europe, notably France. The strongest growth (+65%) was generated in the Middle East and Africa, which benefited from increased domestic demand and higher tourist spend driven by Expo 2020 Dubai and the year-end holiday season. In Japan, the surge in local demand led to a 23% sales increase after two declining quarters.
All channels delivered growth, led by the offline and online retail channels that recorded sales growth of 56% and 40%, respectively. This outstanding performance was driven by double-digit growth across all business areas for retail, and increases of double to triple digits for the online retail channel, depending on the business area. Retail sales were particularly robust in China, Dubai, South Korea and the USA. Sales in the wholesale channel were 4% higher than in the comparative period in 2019, sustained by significant sales in China and the USA.
The stellar 57% sales progression at the Jewellery Maisons, comprised of Buccellati, Cartier and Van Cleef & Arpels, was broad-based across product lines and price points. Sales grew double digits in all regions and across all channels. Reaping the benefits of prior investments and client-centric activities, the Specialist Watchmakers saw sales increase by 20%, with double-digit growth in most regions and watch Maisons. At the Online Distributors, sales rose by 19% reflecting strong trading at YOOX and THE OUTNET as well as the solid performance of Watchfinder. The Group's Other business area, composed primarily of the Group's Fashion & Accessories Maisons, posted a 19% increase in sales. Excluding Delvaux for comparison purposes, growth reached 11%. This noteworthy sales performance was driven by Alaïa, Chloé and Peter Millar.
Trading in the nine-month period ended 31 December 2021
Sales over the nine-month period to December increased by 50% at constant exchange rates and by 51% at actual exchange rates compared to the prior year period, a further improvement over the strong performance in the first six months of the financial year. A quarter-by-quarter sales overview is presented in Appendix 1.
The Group's net cash position at 31 December 2021 amounted to € 4.9 billion (2020: € 2.9 billion).