ZURICH (Reuters) -Cartier maker Richemont proposed to double its dividend on Friday after web revenue rose by a 3rd in its fiscal 12 months 2020/21, helped by a powerful efficiency of its jewelry manufacturers and because it benefited from web finance revenue.
Luxurious watch gross sales have been recovering not too long ago from the extreme pandemic hit, with Richemont, the worldwide No.2 in luxurious items, faring higher than rival Swatch Group because of its publicity to the fast-growing jewelry class.
Richemont didn’t give an outlook for the 12 months, however Chairman and controlling shareholder Johann Rupert cautioned in an announcement that “volatility and low visibility are prone to prevail till there’s herd immunity” towards COVID-19.
Web revenue at Geneva-based Richemont rose by 38% to 1.289 billion euros ($1.58 billion) within the group’s fiscal 12 months to March, forward of a forecast for 821 million euros in a Refinitiv ballot.
Gross sales fell 5% at fixed alternate charges and eight% at precise charges to 13.14 billion euros, additionally beating the 13.02 billion estimate within the ballot because of a powerful restoration within the last quarter.
Bernstein analyst Luca Solca stated the outcomes had been a “robust beat to consensus, constructed on the excellent efficiency of Jewelry Maisons” Cartier and Van Cleef & Arpels.
Business majors LVMH and Kering have reported rebounding gross sales within the first three months of 2021 – equal to Richemont’s last quarter – as easing COVID-19 restrictions boosted gross sales in China and the USA.
Richemont proposed a dividend of two Swiss francs per A share for fiscal 2020, after halving it to at least one franc amid the pandemic final 12 months.
($1 = 0.8175 euros)
(Reporting by Silke Koltrowitz, modifying by John Miller)