LONDON - Compagnie Financiere Richemont, the Swiss luxury goods group and parent of Cartier and Dunhill, continues to ride the luxury boom.
Although profits in the year ending March 31 slipped 9 percent to 1.10 billion euros, or $1.34 billion, from 1.21 billion euro, or $1.52 billion, due to non-recurring gains, sales broke a company record and underlying profits growth remained strong.
Sales rose 17.4 percent last year to 4.31 billion euros, or $5.25 billion, from 3.67 billion euros, or $4.62 billion, driven by strong double-digit gains in all regions, and in every product category except for leather goods.
“This has been an excellent year for Richemont, and all of our executives and employees are to be commended on their contribution,” said Johann Rupert, Richemont’s executive chairman, in a statement Thursday.
Indeed, Richemont’s bottom line suffered only from tough comparisons with last year. The company had reaped major gains from its stake in British American Tobacco when that company restructured its U.S. operations in the previous fiscal year.
Stripping out last year’s gains from BAT, Richemont’s profit would have increased 36 percent to 1.13 billion euros, or $1.38 billion in the year. All currency conversions are made at average exchange rates for the respective periods.
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