Richemont shares slip on earnings disappointment
(Adds analyst forecasts and comments, details on sales results)
Compagnie Financiere Richemont SA’s (CFR.EB) shares traded lower Friday after the Swiss luxury company’s first-half results missed analyst expectations.
Richemont’s net profit rose to 2.25 billion euros ($2.57 billion) in the six months ended Sept. 30 compared with EUR974 million a year earlier on the back of a EUR1.38 billion gain from the revaluation of existing shares of its Yoox-Net-A-Porter business, which it acquired earlier this year.
Excluding this one-off gain, profit for the period was EUR875 million, down 10%.
Revenue for the first six months rose to EUR6.81 billion, up 8% excluding Richemont’s newly consolidated online-distributors division but below an estimate of EUR6.89 billion revenue, according to a analysts’ consensus provided by FactSet.
At 0822 GMT, Richemont shares were 6.2% lower at CHF69.26 ($69.03).
Richemont’s first-half results reflect a weak September, as the company previously reported 10% organic growth for the first five months, according to Vontobel analyst Jean-Philippe Bertschy. Its online-distributors division was particularly disappointing, he said.
The online-distributors division, which comprises the YNAP and Watchfinder businesses, had sales of EUR893 million in the first half and recorded a EUR115 million loss, which Richemont said was mostly due to the amortization of intangible assets.
Richemont, known for its Cartier and Piaget brands, said it posted growth in all its business areas, driven by double-digit sales growth in the Asia-Pacific region, which accounted for 37% of total sales.
Dow Jones Newswires
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