Richemont Results Show Slowdown in Global Luxury Market

Finance and Trade
23/05/2016 08:18

Giant global luxury firm Richemont, which owns Cartier and Montblanc among its other subsidiaries, gives a comprehensive picture of the state of the luxury market with its results for the fiscal year ending March 31. The company's results were impacted by the power of the Swiss franc, a crackdown on corruption in China, overstocking by dealers, and the low pace of economic growth around the world as well as geopolitical uncertainty. Richemont’s sales rose 6% to €11.1 billion, while net profit was €2.23 billion, below the €2.39 billion analysts had been expecting. Although the profit figure was a huge 67% higher than with the previous year, much of the increase was due to an exceptional one-off payment of €639 million for its sale of luxury online retailer Net-a-Porter last year. The state of the market was confirmed by Richemont Chairman Johann Rupert who said: “In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected.”