Richemont posts first-half loss after writedown on YNAP exit
ZURICH (Reuters) – Richemont on Friday reported a net shareholder loss of 760 million euros ($776.72 million) in the first half of its financial year after the luxury group took a charge of 2.7 billion related to its partial exit from online fashion retailer YOOX Net-A-Porter (YNAP).
The Cartier jewelry owner saw his net profit plunge in the six months to the end of September, from 1.23 billion euros a year earlier, after taking the non-cash charge of the depreciation in value of his investment YNAP.
From its continuing operations, which removed the impact of the impairment and the contribution of YNAP, Richemont increased its profit by 40% to 2.1 billion euros.
Sales rose 24% to 9.67 billion euros, helped by a recovery in the Asia-Pacific region and double-digit percentage sales growth in all other regions, as previously confined customers returned to its stores luxury.
Still, Chairman Johann Rupert remained cautious about future developments such as a slowing global economy.
“It is very uncertain how the political, economic and social landscapes will evolve in Europe and our other key markets,” he said.
“We only know that we are likely to face volatile times as central banks seek to contain inflation while governments try to manage severe cost of living pressures.”
($1 = 0.9785 euros)
(Reporting by John Revill, editing by Miranda Murray)