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Richemont Sees Profit Rising as Much as 40% on Currencies

Cie. Financiere Richemont SA (CFR), the second-biggest luxury goods company, said it expects fiscal first-half profit to rise 20 percent to 40 percent as currency shifts boost revenue.

Operating profit in the six months through September will probably also increase within that range, the Geneva-based company said today in a statement. The median of two analyst estimates compiled by Bloomberg is for an 18 percent gain in operating profit.

Sales rose 24 percent in the first four months of Richemont’s fiscal year, the company said. Excluding currency effects, revenue rose 13 percent. Richemont, which reports in euros, said it made the announcement because the Swiss stock exchange requires companies to say when they expect a significant deviation in profit from the year-ago period.

“At the start of the year Richemont was being cautious on its operating margin assumptions,” said Jon Cox, head of Swiss research at Kepler Capital Markets in Zurich. “I suspect consensus operating profit estimates for the year could come up by 10 percent.”

Richemont gets about half of its revenue from the Asia- Pacific region and Japan.

To contact the reporter on this story: Dermot Doherty in Geneva at ddoherty9@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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