Cape Town - Richemont on Friday said it had increased profit by 22 percent to €1.1 billion in the six months to the end of September as sales in its own boutiques offset declining wholesale sales.
A statement from the luxury goods retailer, which owns Cartier and other brands, said sales were up by 15 percent at €5.8 billion, which represented a 3 percent increase at constant exchange rates.
Strong sales through its own boutiques had offset a decline in wholesale sales, which were particularly weak in the Asia-Pacific region.
Operating margin had been resilient at 24 percent, and basic headline earnings per share came in at €1.972, up from €1.616 in the corresponding period last time.
Chairman Johann Rupert, describing the results as satisfactory, said: “Our maisons must be responsive to changing trends and continuously adapt to meet demand in various markets. The positive results seen during the period evidence the maisons’ capabilities in this respect.”
The company said it expects the situation, particularly in wholesale, to continue to be challenging in the second half.
“Our maisons will continue to pursue their differentiated marketing strategies with their planned investments, increasing the ability for each to react to a volatile environment,” it added.
The merger of Net-a-porter and Yoox was completed in October and the related accounting gain of around €620 million would be recognised during the second half of this year.
AFRICAN NEWS AGENCY