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Swiss luxury group Richemont blamed a weaker economic backdrop and geopolitical tensions as the owner of the Cartier jewellery brand reported weaker than expected first-half profits.
The company, which is also behind the Van Cleef & Arpels brand, said on Friday that sales climbed 6 per cent to €10.2bn in the six months to the end of September, below the €10.34bn forecast by analysts.
Profits in the first half, meanwhile, were €1.51bn, short of the €2.17bn forecast.
“Growth eased in the second quarter as inflationary pressure, slowing economic growth and geopolitical tensions began to affect customer sentiment, compounded by strong comparatives,” said chair Johann Rupert in a statement.
“Consequently, we have seen a broad-based normalisation of market growth expectations across the industry.”
Europe was hit hardest, with sales falling 1 per cent in the second quarter. Sales in Asia-Pacific were up 8 per cent while the Americas region reported a 4 per cent increase. Sales in Japan climbed 12 per cent, bolstered by increased tourist spending.
“Richemont joins the ‘moderation club’ in [the second quarter], but with a front-row seat,” wrote Luca Solca at Bernstein.
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