Friday, 18th November 2005 (3620 views)

Swiss luxury goods conglomerate Richemont is thanking strong sales of high-end watches and jewellery for a buoyant first-half performance.

Operating profits for the six months to September soared by 68 per cent to £227 million, smashing analysts' estimates and demonstrating the current strength of the global luxury goods sector.

All of the company's specialist watch making brands - Cartier, Van Cleef, Vacheron Constantin and Montblanc - posted blistering double-digit sales growth during the period.

Analysts hailed the results as a success as total sales also skipped up 16 per cent to $1.35 billion.

"Top-line growth was impressive, driven by demand for luxury watches and Cartier around the globe, particularly in the US," said John Cox, an analyst at Kepler Equities.

Richemont's retail success stretched to both sides of the Atlantic, with sales in the Americas bulking up 21 per cent and European revenues soaring 14 per cent. The Asia-Pacific region also saw an 18 per cent sales rise.

"I am confident that - in the absence of any external events outside our control - Richemont's luxury businesses will report good growth in sales and operating profit for the year as a whole," added Richemont's chairman, Johann Rupert.

 

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