Richemont: recent acquisitions weigh on six-month numbers
(CercleFinance.com) - Swiss luxury group Richemont has reported a lower operating profit today, reflecting an increase in costs after the acquisition of Yoox Net-a-Porter.
Over the six months to 30 September, the company's operating profit fell by 3% to 1.13 billion euros, from 1.17 billion euros in the same period of 2017.
However, net profit for the period more than doubled, to 2.25 billion euros, primarily due to a post-tax non-cash gain on the revaluation of existing Yoox Net-a-Porter shares.
However, both online distributors recorded a 115 million euros loss over the period.
As Yoox Net-a-Porter and Watchfinder are now consolidated in the group's accounts, Richemont saw sales increase by 21% over the six months to September.
Excluding Yoox Net-a-Porter and Watchfinder, sales for the period were up 6%.
All the noise around Yoox Net-a-Porter and Watchfinder's numbers seemed to make investors feel uneasy today, with the Zurich-listed Richemont share dropping over 6% after the report.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Over the six months to 30 September, the company's operating profit fell by 3% to 1.13 billion euros, from 1.17 billion euros in the same period of 2017.
However, net profit for the period more than doubled, to 2.25 billion euros, primarily due to a post-tax non-cash gain on the revaluation of existing Yoox Net-a-Porter shares.
However, both online distributors recorded a 115 million euros loss over the period.
As Yoox Net-a-Porter and Watchfinder are now consolidated in the group's accounts, Richemont saw sales increase by 21% over the six months to September.
Excluding Yoox Net-a-Porter and Watchfinder, sales for the period were up 6%.
All the noise around Yoox Net-a-Porter and Watchfinder's numbers seemed to make investors feel uneasy today, with the Zurich-listed Richemont share dropping over 6% after the report.
Copyright (c) 2018 CercleFinance.com. All rights reserved.