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RICHEMONT

Currency effect lifts Richemont profits

The Swiss luxury goods group Richemont, which owns brands such as Cartier and Jaeger-LeCoultre, reports that first-quarter net profit jumped by 52 percent to 1.087 billion euros, in line with expectations.

Published: 9 November 2012 13:31 CET
Currency effect lifts Richemont profits
Richemont's headquarters in Bellevue, Geneva (Photo: Richemont)

The group's luxury brands "benefited from favourable exchange rates effects, successful product launches as well as strong pricing power," Richemont said in a statement released on Friday.

Richemont also announced the nomination of Bernard Fornas and Richard Lepeu as joint chief executive officers from April 1st, 2013 in place of Johann Rupert, the group's founder, who is to remain president.

The Geneva-based company said its core operating profit gained 28 percent to 1.38 billion euros in the three-month period that ended on September 30, the first quarter of its fiscal year, on sales that rose 21 percent to 5.11 billion euros.

The group's profit margin improved by 1.5 percentage points to 27 percent.

Some of the group's other well-known brands are Van Cleef & Arpels, Piaget, Vacheron Constantin, and Montblanc.

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SWATCH

Swatch reports higher profits in first half

Swiss watchmaker Swatch says that its profits rose in the first six months, but its performance was dampened by the strength of the Swiss franc.

Published: 21 July 2017 09:12 CEST
Swatch reports higher profits in first half
Omega belongs to the Swatch brand. Photo: Matthew Eisman/AFP

“The overvalued Swiss franc dampened growth in the first half of the year,”Swatch said in its first half report.

“As in the previous year, the first half of 2017 was characterized by worldwide turbulence,” the report said.

“However, the Swatch Group, with its 20 strong brands and its own retail network, is very well represented worldwide, and was therefore able to generate net sales of 3.7 billion Swiss francs (3.3 billion euros, $3.9 billion).”

That represented a fractional decline of 0.3 percent compared with the corresponding period a year earlier.

At constant exchange rates, sales would have risen by 1.2 percent.

Net profit grew by 6.8 percent to 281 million Swiss francs (254 million euros), slightly short of analysts' expectations.

Looking ahead, Swatch said it “anticipates very positive growth in local currency in the second half of the year. In addition to its already strong own retail business, wholesale should also develop positively”.