default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Richemont Sees Challenging Market After April Sales Plunge

Richemont, the maker of Cartier jewelry and IWC Schaffhausen timepieces, forecast a difficult first half after sales plunged 18 percent in April.
Richemont-owned Cartier store | Source: Shutterstock
By
  • Bloomberg

GENEVA, Switzerland — Richemont, the maker of Cartier jewelry and IWC Schaffhausen timepieces, forecast a difficult first half after sales plunged 18 percent in April.

The Swiss company also reported full-year earnings that missed analysts’ estimates Friday, dealing a further blow to the ailing luxury-goods industry. The shares fell as much as 5.6 percent.

"In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected," chairman Johann Rupert said in a statement. "Challenging comparatives will persist through September."

The company, whose full name is Cie. Financiere Richemont SA, has been struggling with the strong franc and is cutting almost 100 jobs in its Swiss watchmaking operations, having reduced headcount by 500 in the past year. Aside from weak demand in Asia, Richemont is also affected by a slowdown in tourism to Europe following the Paris terror attacks in November, a trend that analysts say may extend after the bombings in Brussels in March.

Richemont had a “weaker start to fiscal 2017 than feared,” wrote Rogerio Fujimori, an analyst at RBC Capital Markets. “Comparatives should get easier in the second half of the current fiscal year.”

Operating profit fell to €2.06 billion ($2.3 billion) in the 12 months through March, the Geneva-based company said. That missed the average analyst estimate of €2.29 billion.

Co-chief executive officer Bernard Fornas retired at the end of March, leaving Richard Lepeu as sole chief executive officer. Richemont doesn't plan further job cuts in Switzerland, Lepeu said on a call with reporters.

By Corinne Gretler; editors: Matthew Boyle, Thomas Mulier and Paul Jarvis.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.




view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024