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GENEVA, Switzerland — Cie. Financiere Richemont SA, the maker of Cartier jewelry and IWC watches, reported first-half operating profit that fell 0.7 percent as Asian sales growth slowed and currency swings weighed on earnings.
Operating profit dropped to 1.37 billion euros ($1.8 billion) in the six months through September, the Geneva-based company said today in a statement. Analysts expected 1.4 billion euros, according to estimates compiled by Bloomberg. Sales increased 4.3 percent to 5.32 billion euros.
“The subdued overall environment and in particular our continued investments for the long term call for increased caution,” Chairman Yves-Andre Istel said in the statement. He said the company doesn’t plan to sell any brands in the foreseeable future.
Revenue in the Asia-Pacific region, the source of about 40 percent of Richemont’s sales last year, is rising more slowly as China cracks down on the use of watches and jewelry as bribes and illegitimate gifts. Growth in that market was 4 percent in the first half, excluding currency shifts. Asia-Pacific revenue rose 5 percent on that basis in the past fiscal year and 46 percent in the prior 12 months.
By Janice Kew; Editors: Thomas Mulier, Kim McLaughlin, Celeste Perri
