Richemont releases first-half earnings report for 2017
The world’s second largest luxury company, Richemont, released an earnings report for the first half of its financial year (ending September 30). The company, which is known for a variety of high-end brands like Cartier and Van Cleef & Arpels, said sales increased by 12% year on year, and at constant exchange rates.
This uptick was driven by growth across all segments, distribution channels, and regions, and the company said “most markets” were now in positive territory. Notable for their outperformance were Mainland China, Korea, the United Kingdom, and Hong Kong – the last of which has finally returned to growth for Richemont.
Richemont’s share price is up by 18% so far this year
SOURCE: Yahoo Finance
Richemont reported a host of positive news, which matched analysts’ expectations, as the luxury sector continues to see stronger performance in 2017 than it has in recent years. Against the same period in 2016, the company’s profit grew by 80%, while operating profit on a reported basis rose by 46%, and free cash flow from operations increased by 66%. This is a reflection, in part, of strong fundamentals this year – but it’s also true that the first half of 2016 was very poor for Richemont, and thus paints this year’s figures in a very positive light.
In a statement, the company’s chairman Johann Rupert looked to the future, saying: “Richemont’s new Board and management team bring diverse skillsets which are relevant to the challenges our business is facing. They are focused on defining the Group’s transformation agenda to meet the rapidly changing demands of luxury consumers. Our solid balance sheet provides the flexibility and resilience necessary to support our Maisons through this transformation journey.”
Dominion holds Richemont in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.