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RICHEMONT

Richemont warns of lower 2014-15 profits

Geneva-based Richemont, the world's number two maker of luxury goods, said Wednesday it expected its annual profit to fall by more than a third due to losses on financial instruments.

Published: 22 April 2015 11:25 CEST
Richemont warns of lower 2014-15 profits
Photo: Richemont

The company, which owns top global brands like Cartier, Piaget and IWC, also said its tax rate would rise considerably.

Richemont said its results for the year ended March 31st were impacted by losses on financial investments, including “monetary items and derivatives”.

Because the majority of such non-cash losses are not subject to tax, the group’s effective tax rate is expected to “significantly increase,” it said.

Yet Richemont, which reports full results on May 22nd, said the losses "had no material impact on the . . . net cash position which amounted to €5.4 billion ($5.8 billion) at the end of March."

The company reported a net profit of €2.07 billion for the 2013-14 year.

Richemont's full-year sales, excluding the results of its Net-a-Porter unit, grew four percent on a reported basis, and one percent at constant currencies.

Last month Italian online fashion retailer Yoox bought Net-a-Porter in an all-share deal.
   
Richemont said its operating profit for the year is expected to show a ten percent rise, including a gain on an investment property disposal.
   
Following the announcement, Richemont shares fell 1.5 percent in mid-morning trading on the Swiss stock exchange.

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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”.