Richemont [JSE:CFR], which has been supported by Asian shoppers and emerging
markets growth recently, said strong sales growth will help boost the luxury
goods maker’s profit by up to 40%, much more than the company had originally
The Swiss-listed maker of IWC watches and Cartier jewellery
said on Monday that operating and net profit were likely to increase by between
20% and 40% in the first half of 2012.
Shares in the firm were set to rise 2%, in comparison with a
largely flat Swiss blue chip index, according to pre-market data from bank
The firm burnished its outlook after sales for the four
months ending July 2012 rose 24% on a reported basis and 13% in constant
currencies from a year earlier.
Despite fears the global economy is heading for a slowdown,
strong growth in emerging markets, plus a tendency among Asian shoppers to buy
luxury goods while on holiday in Europe, have buoyed sales at Richemont and
bigger rival LVMH.
Richemont beat expectations with a 43% rise in profit for
last year, thanks to strong Asian demand, and said at the time it expected
The firm, controlled by South Africa’s Rupert family, said a
variety of factors - among them movements in the exchange rate - could still
impact the results, meaning the five-month sales figures due to be reported on
September 5 could still rise or fall.
According to Swiss stock exchange rules, firms must make an
announcement if profit or loss is seen varying significantly from the prior
Richemont shares added 6.14% on the JSE to R49.85.
*Follow Fin24 on Twitter, Facebook and