Half-year profits rise for luxury firm Richemont
Geneva-based Richemont, the world's second largest luxury goods firm, posted on Friday a 10-per-cent increase in profits for the first half of its fiscal year over the same period 12 months earlier.
Net earnings for the six-month period ending September 30th rose to €1.18 billion euros ($1.58 billion), in the middle of the range of analysts' expectations, but the company said that adverse currency movements hit operating profits.
Operating profits came in at €1.37 billion, down one percent from the same period last year, the Swiss firm said in a statement,
The company, which is especially sensitive to exchange rate fluctuations, blamed the drop on "unfavourable currency movements."
Sales rose four percent to €5.32 billion.
Richemont is known for owning such brands as Cartier and Montblanc, among others.
Group chairman Yves-Andre Istel said that exchange rates were "likely to weigh on our reported results" in the next six months as well.
"While the comparative sales figures for the important holiday trading period are less challenging, the subdued overall environment and in particular our continued investments for the long term call for increased caution," added the chairman.
Finance director Gary Saage told reporters that Richemont was likely to hang on to its Lancel brand.
"It makes more sense to keep it," he said.
Investors appeared disappointed by the result, sending the stock down around two percent on the main Swiss index, which was only fractionally in the red.
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Net earnings for the six-month period ending September 30th rose to €1.18 billion euros ($1.58 billion), in the middle of the range of analysts' expectations, but the company said that adverse currency movements hit operating profits.
Operating profits came in at €1.37 billion, down one percent from the same period last year, the Swiss firm said in a statement,
The company, which is especially sensitive to exchange rate fluctuations, blamed the drop on "unfavourable currency movements."
Sales rose four percent to €5.32 billion.
Richemont is known for owning such brands as Cartier and Montblanc, among others.
Group chairman Yves-Andre Istel said that exchange rates were "likely to weigh on our reported results" in the next six months as well.
"While the comparative sales figures for the important holiday trading period are less challenging, the subdued overall environment and in particular our continued investments for the long term call for increased caution," added the chairman.
Finance director Gary Saage told reporters that Richemont was likely to hang on to its Lancel brand.
"It makes more sense to keep it," he said.
Investors appeared disappointed by the result, sending the stock down around two percent on the main Swiss index, which was only fractionally in the red.
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