26 OCT 2001
Richemont, the Swiss luxury goods group, today announced that its businesses had suffered a considerable slowdown in the period since 11 September. The positive trend in sales seen over the first 10 days of the month was reversed such that, on a like for like basis, sales for the month of September as a whole decreased by some 13 per cent. Whilst the United States market was the worst affected, sales in most other markets - with the notable exception of Japan - were also adversely impacted.
The resulting loss of gross margin contribution, together with the increase in underlying operating costs reported at the company's Annual General Meeting on 13 September, has had a significant adverse impact on profitability. In consequence, the Group's operating profit for the six month period to 30 September 2001 is anticipated to be approximately 20 per cent below the level seen in the comparable period of last year.
Richemont's results for the six month period ended 30 September 2001 will be released on 15 November. Further information and analyses, together with a commentary on the outlook for the remainder of the financial year ending 31 March 2002, will be given at that time.