Cartier-parent Richemont’s profits hit by Swiss franc bombshellComments Off on Cartier-parent Richemont’s profits hit by Swiss franc bombshell
The stronger Swissie cost the firm €686 million (£489 million), which was mainly responsible for a 35% drop in profits to €1.33 billion despite a 10% rise in operating profits to €2.67 billion.
Sales were up 4% at €10.4 billion in the year to end-March. Chairman Johann Rupert said the Swiss decision to stop pegging the franc to the euro would have lasting consequences.
“In the longer term, we face the question of whether the euro will settle at the current level against the Swiss franc, recover somewhat or potentially weaken further,” he said.
“Given the extent of the group’s activities here in Switzerland… the strengthening of the Swiss franc inevitably means that our costs, measured in euros, will increase.”