• Switzerland's news in English
Swiss firm takes hit despite Brexit boost
Richemont owns brands including Vacheron Constantin. Photo: Richard Juilliard/AFP

Swiss firm takes hit despite Brexit boost

AFP · 14 Sep 2016, 14:10

Published: 14 Sep 2016 14:10 GMT+02:00

Facebook Twitter Google+ reddit

The world's second-biggest luxury group forecast operating profit 45 percent lower at the end of September, which concludes the first half of its 2016-17 fiscal year, compared to the same period last year.
Sales plummeted 14 percent during the first five months of the fiscal year, which Richemont put down to "the challenging comparative figures in 2015, the repurchase of slow-moving watch inventory and the difficult global environment."
One-time restructuring costs of 65 million euros ($73 million) will also dent profits during the six-month period, the firm said.
"We are of the view that the current negative environment as a whole is unlikely to reverse in the short term," it cautioned.
European sales plunged 20 percent, dragged down especially by France, which saw far fewer tourists than usual following several deadly terrorist attacks.
The picture was rosier on the other side of the channel, with Britain showing swelling sales since its referendum at the end of June dented the value of the pound, making luxury goods there less expensive for foreign visitors.
In the Asia-Pacific region, another key market for the group, sales contracted 12 percent amid particularly weak demand in Hong Kong and Macau, forcing the company to buy back excess stock.
Japan also reported significantly lower sales compared to high figures last year, while the strength of the yen depressed tourist spending in the country, Richemont said.
The company, which also holds such brands as Piaget, Jaeger LeCoultre and Van Cleef & Arpels, meanwhile hailed overall sales growth in mainland China and South Korea.
And it said "positive momentum" in jewellery and accessories in the Americas had been offset by weak demand for watches, pushing overall sales down eight percent.
Following the news, Richemont saw its share price slump four percent in mid-morning trading, to 57.40 Swiss francs, while the Swiss stock exchange's main SMI index inched up 0.1 percent.

For more news from Switzerland, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Presented by MoneyPark
How to get a mortgage in Switzerland
Houses in Zürich. Photo: Pixabay.

Ready to buy? Here’s what you need to know as an expat about Swiss regulations, how to finance your purchase, and why you should use a broker.

Autumn in Switzerland: ten stunning Instagram photos
Photo: Swiss Tourism/Jan Geerk

Switzerland is beautiful in all seasons, but as these photos show, autumn is a special time in the alpine country.

Report: Swiss progress slows on gender equality
File photo: David Soulivet

Globally, it will take 170 years to achieve gender equality, according to the World Economic Forum.

Brothers go to court to stop suicide of sibling
File photo: Lisa Edmonds

Two men have filed a legal bid to prevent the Swiss assisted suicide association Exit from helping their older brother to kill himself.

Wawrinka snubs past form to reach Basel second round
Wawrinka beat local wildcard Marco Chiudinelli. Photo: Fabrice Coffrini/AFP

US Open champion Stan Wawrinka has reached the second round in Basel after going out in the first round for the past four years.

Villagers asked to help fund bridge renovations
The bridge links the two villages of Veltheim (pictured) and Holderbank. Photo: Lutz Fischer-Lamprecht

The crowdfunding campaign by the two communes is the first of its kind in Switzerland.

Police discover body buried in Orbe house
File photo: Bas Leenders

Police have opened an investigation after finding a body buried in a house in Orbe, in the canton of Vaud, on Saturday.

Valais shaken by 4.2 magnitude earthquake
The earthquake hit in the canton of Valais near Sierre. Photo: Alain Rouiller

It's the biggest earthquake to hit the country for two years.

Swiss Indoors kicks off without champ Federer
Federer celebrates with ball girls and boys after winning the event in 2015. Photo: Harold Cunningham/Pool/AFP

Stan Wawrinka is top seed as injured Federer sits it out.

IOC hires Russian doping whistleblower as consultant
IOC President Thomas Bach confirmed the news. File photo: Fabrice Coffrini/AFP

The International Olympic Committee (IOC) has hired Vitaly Stepanov as a consultant and is helping his runner wife Yuliya.

Photo: Unterirdisch Ueberleben
Inside Switzerland’s largest nuclear bunker – 40 years on
Sponsored Article
Last chance to vote absentee in the US elections
Photo: The Local
Ticino firefighters rescue cow from swimming pool
Photo: Antoni Da Campo
Vegan wins battle to be accepted by Swiss army
Photo: Swiss Tourism
Ten Swiss ski resorts named most expensive in Europe
Photo: Randy Kashka
Swiss women will ‘work for free’ for the rest of year
Photo: Swiss Tourism
Montreux throws hat in Olympic rings
Photo: Swiss Tourism
Seven things you’ll miss about Switzerland if you leave
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
jobs available