Sep 5, 2012
Richemont still upbeat, says Asia demand solid
Sep 5, 2012
Richemont (CFR.VX), the world's second largest luxury goods group, confirmed a bullish outlook on Wednesday, saying sales continued to be healthy, including in Asia, a particular concern for the luxury industry given cooling growth there.
Ahead of its annual general meeting, the maker of IWC watches and Cartier jewelery reiterated a forecast it made last month for operating and net profit to increase by between 20 and 40 percent in the six months to the end of September.
Sales for the five months to the end of August rose 23 percent on a reported basis - down from 24 percent for the first four months - and 13 percent in constant currencies.
"Europe was strong, particularly in the retail channel in major tourist destinations. Demand in the Asia-Pacific region remained solid after two years of exceptionally high growth," Richemont said in a statement.
Strong growth in emerging markets, in particular China, plus a tendency among Asian shoppers to buy luxury goods while on holiday in Europe, have buoyed sales at Richemont and bigger rival LVMH (LVMH.PA), helping offset the impact of reduced spending in Europe, as government austerity measures bite.
(Reporting by Emma Thomasson)
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