Richemont net profit up on one-off gain, sales up

Compagnie Financiere Richemont SA (CFR.EB) said Friday that its net profit for the year ended March 31 rose on a one-off gain.

The Swiss luxury-goods group said net profit for fiscal 2019 was 2.79 billion euros ($3.12 billion), up from EUR1.22 billion the previous year. Analysts had seen Richemont’s net profit at EUR2.96 billion, according to a consensus estimate provided by FactSet.

The big jump in profit partly reflects a EUR1.38 billion gain on the revaluation of existing shares of the Yoox-Net-A-Porter business, which Richemont acquired in 2018.

Sales for the year rose 27% to EUR13.99 billion. Analysts had forecast sales at EUR13.91 billion.

The owner of Cartier and Van Cleef & Arpels said it is starting to see the benefits of recent initiatives targeting the qualitative improvement of our distribution network across its business.

Richemont proposed a dividend of CHF2.00 a share, compared with CHF1.90 a share the previous year.

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