8% increase in Group’s own retail business in currency-adjusted terms
Currency-adjusted sales in the Asia/Pacific region rose by 6% in the past fiscal year. Sales in the Group’s own retail business in this region rose by 5% to EUR 364 million in the reporting currency (2016: EUR 347 million). This is equivalent to growth of 8% in local currencies compared to the prior year. On a comp store and currency-adjusted basis, sales increased by a percentage rate in the mid single-digits. At EUR 31 million, sales with wholesale partners were down 11% year on year in the Group’s reporting currency and 10% in the local currency (2016: EUR 35 million). Takeovers in the prior year of selling space previously operated by wholesale partners made a material contribution towards this.
China and Japan the strongest growing markets in the region
At EUR 221 million, sales in China were up 5% on the prior year (2016: EUR 211 million). This is equivalent to a currency-adjusted increase in sales of 8%. Business in mainland China was stronger than in Hong Kong and Macau. At EUR 61 million, sales in Oceania increased 1% in the Group’s reporting currency (2016: EUR 60 million). The market remained stable in local currencies. Due to strong business with tourists, at EUR 49 million, sales in Japan were up 4% on the prior year (2016: EUR 47 million). This is equivalent to a currency-adjusted increase in sales of 9%.
Growth in segment profit
At EUR 91 million, segment profit in Asia/Pacific was up 14% on the prior year (2016: EUR 80 million). This was largely due to higher sales, reduced discounting compared with the prior year and only a moderate increase in operating expenses. However, negative currency effects weighed on segment profit. Without these, the increase in profit would have been even higher. At 23.0%, the adjusted EBITDA margin in this region was up 220 basis points on the prior year (2016: 20.8%).