Richemont, the Swiss luxury group known for brands like Cartier and Vacheron Constantin, reported a 2.2 billion euros operating profit for the first half of the fiscal year, falling short of analyst expectations of 2.47 billion euros.
Sales remained stable in constant currencies for the six months ending September, yet the company faces challenges due to reduced demand in China, particularly in its watchmaking division. The luxury watch market has been impacted by a decline in consumer confidence and price increases during the pandemic.
Despite these challenges, Richemont's shares have risen approximately 15% over the past year, outperforming many competitors and the Swiss stock market, largely driven by its jewelry division, which accounts for about 70% of revenue.
In corporate leadership changes, Nicolas Bos, previously credited with boosting sales at Van Cleef, was appointed as CEO in May. Additionally, Louis Ferla, former head of Vacheron Constantin, will oversee Cartier.
In October, Richemont announced the sale of its e-commerce platform Yoox Net-A-Porter to Germany's Mytheresa, acquiring a one-third equity stake in the luxury online retailer. This move follows a failed attempt to sell YNAP to Farfetch last year.