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RICHEMONT

Weak euro boosts Richemont profit figures

Richemont, the world's second-biggest luxury goods company, on Friday reported strong profits but acknowledged that a currency windfall caused most of the rise.

Published: 6 November 2015 13:41 CET
Weak euro boosts Richemont profit figures
Photo: Richemont

Richemont, second only to France's LVMH in the luxury world, also said that the boss of its legendary Cartier division was leaving his post.
   
Richemont's net profit rose 22 percent in the six months to September to €1.1 billion ($1.2 billion).

Sales in the period, the group's first half, rose 15 percent to 5.8.
   
The weak euro, the company's reporting unit, accounted for a big chunk of the rise, the company said, as sales in other currencies translated into more euros.
   
Stripping out currency factors, the sales increase was just three percent.
   
The company also said that Stanislas de Quercize, managing director of legendary jewellers Cartier had submitted his resignation for personal reasons with immediate effect.

He is to stay on as president of Richemont France, it said.
   
Group turnover was boosted by jewellery sales, especially in Europe and Japan.
   
But sales in luxury watches were weak, particularly in the Asia-Pacific region, it said.

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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”.