Sales slide at Richemont
Switzerland-based luxury goods group Richemont has posted a 4% sales decline for the year ended March 31. Sales fell to EUR 5.18 billion, while profits also fell 18%.
"Despite the difficulties the group has experienced, Richemont has come through the recession in good shape," Johann Rupert, executive chairman and chief executive officer of the company, said. "The measures that we introduced in 2008 to limit capital expenditure, to focus boutique openings in high-growth markets, to limit production and inventory build-up and to keep costs under strict control were timely and effective. Although we have had to take prudent measures to preserve the group's profitability and cash flow, such decisions have always been taken with a view to the long-term development of the group."
Richemont's fashion, leathergoods and accessories business accounted for a fifth of sales but contributed barely 5% of operating profit. Only Montblanc and Chloe made a profit.
