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Richemont leather & accessories biz broadly in line

13 Sep '07

4 min read

Sales in Europe increased by 14 per cent, in the Americas by 6 per cent and in Asia by 22 per cent, all at actual exchange rates.

The weakness of the yen over the period resulted in a decline of 4 per cent in sales in that market in euro terms, although underlying sales in local currency terms grew by 7 per cent.

The past month has seen turbulence in financial markets as access to easy money has dried up for some market participants. I am not sure that we are necessarily over the worst.

However, I can assure you that the Group's cash resources are conservatively invested and Richemont has not suffered any financial losses as a consequence of the unsettled market conditions.

Equally, we are seeking to minimize our exposure to any major downturns in terms of markets and consumer confidence. Richemont is fortunate that the luxury goods business, whilst not immune to external disruption, has historically shown itself to be relatively resilient.

There are many opportunities for our businesses to grow, both in terms of the expanding number of potential clients in established markets as well as new markets which are opening up to luxury products.

Currently, my principal concern is the capacity of our Maisons – particularly those in the watchmaking sector – to meet demand.

We are addressing the whole supply question, with plans for further expansion of our watchmaking capacity. That will take some time to deliver, however.

"Richemont owns businesses such as Cartier and Montblanc, which are leaders in their fields and our watch businesses are at the pinnacle of the industry."

"We are very well placed with a conservative balance sheet and no net debt. I therefore have every confidence that, whatever may lie ahead in the short term, Richemont will continue to prosper and grow over the long term.”

For its financial year ended 31 March 2007, Richemont reported an increase in sales of 12 per cent to € 4 827 million.

Operating profit amounted to € 916 million, an increase of 24 per cent over the prior year. Richemont's interim results for the six-month period to 30 September 2007 will be released on Friday, 16 November 2007.

Richemont

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