Mixed fortunes for Richemont

Swiss luxury goods group Compagnie Financiere Richemont posted a mixed third-quarter trading statement this morning, with subdued economic conditions and continued currency volatility impacting business.

This statement follows a satisfactory set of results for the interim period ending in September 2013. The group’s results for the current financial year will be announced on Thursday 15 May 2014.

Today’s update showed that Richemont’s sales in the quarter increased by 9% at constant exchange rates and 3% at actual rate, missing estimates of 11% sales growth.

Performance in Europe and the Middle East was satisfactory, with sales continuing to benefit from visitors to the region’s major tourist destinations. Sales growth in the Americas region was good. This was led by robust retail demand, particularly in jewellery and at the Net-a-Porter group.

In Asia Pacific, growth remained relatively consistent with the trend seen in the first six months of the current financial year, and China continued to disappoint.

The Group’s net cash position at 31 December 2013 amounted to €4.3 billion, up from €3.0 billion in 2012.[1]

The share has been helped by improved trading in Europe and Middle East. The weak South African Rand has helped the JSE listing, with the majority of the firm's earnings being abroad.

Compagnie Financiere Richemont chart

[1] Source: JSE Sens

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