Dow Jones Newswires: Richemont strikes upbeat tone as Asia-Pacific sales recover

by | Nov 11, 2022 | Stock Market

Compagnie Financiere Richemont SA on Friday struck an upbeat tone despite macro uncertainty ahead as second-quarter sales recovered in Asia-Pacific. The Swiss luxury-goods group
CFR,
+3.23%,
which counts jeweler Cartier among its brands, made a net profit from continuing operations of 2.11 billion euros ($2.15 billion) in the six months to Sept. 30. At a reported level, the company posted a net loss of EUR766 million, accounting for a write-off from the divestment of a majority stake in e-commerce platform Yoox-Net-A-Porter agreed in August.

Half-year sales rose 16% at constant currency to EUR9.68 billion, picking up pace from the 12% increase booked in the first quarter, while operating profit climbed to EUR2.72 billion, Richemont said. Analysts had forecast group sales of EUR9.26 billion and operating profit of EUR2.43 billion, according to a FactSet-compiled poll of estimates. In Asia-Pacific, Richemont’s largest market, sales recovered to a 6% increase in the second quarter, despite continued pandemic-related pressures in Greater China, the company said. Looking ahead, Richemont Chairman Johann Rupert noted the macroeconomic headwinds of rising inflation and cost-of-living pressures, but said the group was confident of weathering the uncertain times thanks to its “clear strategy, strong Maisons, and a robust balance sheet.” Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokir …

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