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Richemont Sales for Oct-Dec 2015 down 4% at Constant Exchange Rates; Up 3% at Actual Rates

Jan 15, 2016

Reporting on results for the quarter ended December 31, 2015, Richemont announced that sales for the quarter had declined by 4% at constant exchange rates; while at actual rates sales  increased by 3%. 

Total sales for the quarter from October 1 to December 31, 2015 touched € 2,927 million; as compared to € 2,835 million attained in October to December 2014. 

Richemont noted that jewellery “continued to enjoy growth across most regions and product categories, partly compensating weak demand for watches”.

Jewellery sales for the relevant period stood at € 1,603 million as against € 1,565 achieved in the same period of the previous year. This represented a fall of 5% at constant exchange rates versus prior period; and a gain of 2% at actual exchange rates versus prior period.  

The Company said that in comparison with the first six months of the current year, there was a slowdown in sales which was mainly on account of “weak trading in Europe” and trading conditions in the Asia Pacific which continued to be “challenging”.

While sales to the Asia Pacific region were highest – and also flat – at € 1,036 million, they represented a fall of 9% at constant exchange rates versus prior period; sales in Europe were also virtually flat (€ 868 million as against € 867 million in the same period of the previous year). Sales to the Americas (+9%), Japan (+17%) and Middle East and Africa (+4%) all showed a growth at actual exchange rates versus prior period. 

For the nine-month period up to December 31st, 2015, sales growth was flat at constant exchange rates, but increased by 11 % at actual rates, the Company said.

“The challenging trading environment is likely to prevail in the final quarter to 31 March 2016,” Richemont warned. “Operating profit for the year as a whole will also be negatively affected on a comparative basis by the property disposal gain of € 234 million recorded in the year ended 31 March 2015.” 

However, the Company indicated that “net profit for the year will benefit on a comparative basis from the non-cash gain of some € 620 million announced in October 2015 relating to the merger of The NET-A-PORTER GROUP with YOOX Group”; adding that “should the Swiss franc remain at current levels versus the euro, the non-cash financial charge of € 652 million recorded in the prior year relating to the Swiss National Bank’s actions in January 2015 will not recur in the current year”. 

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