RAPAPORT... Swiss luxury goods group Richemont anticipates that its profit will drop 36 percent year on year for the fiscal year that ended on March 31. The company made an unscheduled announcement to warn investors, explaining that the decline was a result of losses on financial instruments, including derivatives.
The group operates luxury brands Cartier, Van Cleef & Arpels, Piaget, IWC and Montblanc. Last month the group sold Net-A-Porter to YOOX in an stock deal.
Richemont indicated that sales in the fiscal year, excluding Net-A-Porter, rose by 4 percent on a reported basis and by only 1 percent on a constant-exchange-rate basis. Richemont’s operating profit for the year was anticipated to improve 10 percent, however.
Richemont will report official results on May 22.
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