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Richemont 1H net profit grows less than expected

Cartier owner Richemont said it expected a challenging second half after net profit in the first half through September grew less than expected and demand for its luxury watches deteriorated further in October.

Half-year sales rose 3 percent at constant currencies to EUR5.82 billion (USD6.3 billion) for the six month period ended on 30 September 2015, lagging forecasts, and October sales fell 6 percent. Net profit rose 22 percent to EUR1.1 billion against a forecast EUR1.2 billion, mainly due to a negative one-off effect year ago. Profitability deteriorated, hit by a stronger Swiss franc.

"Headline numbers in watches will take time to recover," Richemont Chief Financial Officer Gary Saage told reporters on Friday, adding the second half of the year would be challenging, particularly in wholesale business in Hong Kong and Macau.

(Source: CNBC)