Richemont Posts Slowing Sales Growth Amid Challenging Environment

By Andrea Figueras

Compagnie Financiere Richemont posted a slowdown in sales growth for the first-half of fiscal 2024, due to inflation, slowing economic growth and geopolitical tensions that hurt customer sentiment.

The Swiss-based luxury company, which counts jeweler Cartier among its brands, said on Friday that it made net profit from continuing operations of 2.16 billion euros ($2.30 billion) for the first six months to Sept. 30, compared with EUR2.11 billion in the year-earlier period. At a reported level, the company swung to a net profit of EUR1.505 billion, compared with a loss of EUR766 million.

The company booked sales of EUR10.22 billion, up 6% at current exchange rates and 12% at constant currency, showing a normalization in growth as first-quarter sales increased 19% at constant exchange rates. Operating profit fell 2% to EUR2.655 billion.

The core jewelry division, home to Cartier and Van Cleef & Arpels, reported sales of EUR6.95 billion, up 10% at current exchange rates.

"We have seen a broad-based normalisation of market growth expectations across the industry," Richemont Chairman Johann Rupert said. Looking ahead, Rupert noted a volatile environment and global uncertainties, but said that he has confidence in the group's long-term prospects.

The company appointed Karlheinz Baumann, Group Director of Operations, to the senior executive committee effective immediately. Furthermore, Richemont said that it obtained clearance from regulatory authorities to sell a stake in online platform Yoox Net-A-Porter to Farfetch, although the completion of the transaction remains subject to certain other conditions," it said.

Write to Andrea Figueras at [e-mail]

(END) Dow Jones Newswires

November 10, 2023 02:01 ET (07:01 GMT)

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