Richemont losing shine

11 April 2012

Cartier jewellery to Mont Blanc pens luxury goods group Richemont today predicted a tough six months ahead in its global markets.

Chairman Johann Rupert today said: "It is extraordinarily difficult to predict what's going to happen. Europe and the US will be in a mess for a considerable period of time."

However, he noted that America had a tendency to fix its problems "more quickly".

But he said he believed the group would still produce "significantly higher" operating profits for the year to next March.

Reflecting the latest trends in the luxury goods market first-half sales growth of jewellery outstripped that of watches as women - particularly in Asia - are moving their purchases from timepieces to branded trinkets.

Performance from Cartier and Van Cleef and Arpels was notably strong. All makes of watches performed well but margins slipped slightly.

Group first half sales rose by 29% to �4.21 billion (£3.61billion) and profits after tax were 10% higher at �709million. That was well ahead of analysts forecasts.

Asia-Pacific is now the group's largest market with sales ahead by 60% to �1.72 billion in the six months to the end of September.