Net loss for Richemont after the sale of its online sales activities

The Geneva luxury giant Richemont suffered a net loss of 766 million euros (about 756 million francs) in the first half, against a profit of 1.2 billion (1.18 billion francs) last year, related to the sale of its online sales activities.

At the end of August, the group unveiled an agreement with the British e-commerce platform Farfetch to sell it in two stages Yoox-Net-A-Porter (YNAP), which consolidates its online sales activities, warning however that the transaction would lead to a value adjustment of 2.7 billion euros (2.67 billion fr.) in its accounts.

Operating profit from continuing operations between April and September, on the other hand, rose by 26% over one year to 2.7 billion euros (2.67 billion fr.) and the margin was 28.1%, an improvement of 30 basis points. Turnover from continuing operations was 9.68 billion (9.54 billion fr.), a jump of 24% on an annual basis and 16% at constant exchange rates.

Read also: Grazie mille Signore Trapani: Richemont ends reform dreams of Bluebell Capital Partners

Jewelry and watches on the rise

Jewellery, the main division, saw its sales climb by 24% to 6.3 billion (6.22 billion fr.) and its operating profit took 22% to 2.35 billion (2.32 billion fr.) while the related margin fell by 80 basis points to 37.1%. The turnover of the watch industry which includes brands like IWC increased by 22% to 2.04 billion (2.01 billion fr.). Operating profit rose 35% to 506 million (552 million fr.) and the corresponding margin shrank by 240 basis points to 24.8%.

At regional level, Europe recorded revenue up 45% to 2.18 billion (2.15 billion fr.), Asia-Pacific took 3% to 3.76 billion (3.71 billion fr.) and the Americas 40% to 2.2 billion (2.17 billion fr.).

Read also: Target of an activist fund, Richemont does not waver

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