RICHEMONT (CIE FIN) SPON ADR EACH REPR 0.1 ORD (OTCMKTS:CFRUY) was a notable decliner during Friday’s trading session declining by 2% on relatively high volumes, which were 0.5 times the daily average turnover. Bears seem to holding the upper hand at the current moment as the stock has been forming lower tops and lower bottoms indicative of the strong bearish momentum. Richemont currently trades below all important moving averages, which is considered to be a bearish signal. The momentum oscillators show no signs of a reversal. The stock hit a fresh 52-week low during the trading session, which is a negative.
RICHEMONT (OTCMKTS:CFRUY) announced financial results for the recently concluded six-month period. As per the reports, the biggest highlight of these results was the unexpected 15% hike in its sales that touched a whopping €5,821 million milestone.
Financial Insights For The Period
The 15% hike in sales revenues was when the constant exchange rates were ignored; otherwise, the hike would come down to 3 percent. The Asian market went through some of the difficult months lately regarding the financial position, which affected Richemont as well. Its business in Asia-Pacific region was not as good as other parts of the world; however, extraordinary Maisons’ own boutiques offset this negative effect.
When it comes to operating performance of the company, Richemont lived up to investors expectations. Its operating profit for the period increased 6% on YOY basis and touched €1,390 million figure. The operating margin of 24% was also well in line, which kept the morals of the entire management team high. The overall profit for the six month period was €1,103 million, 22% higher than the profit reported by the company during the same period in 2014.
The cash position of the company remained solid throughout the period. It ended the period with a whopping cash flow of €1,055 million from operations.
Management’s Call
The senior management team of the company is super excited to announce these financial results and hopes to continue this performance in the coming months as well. According to company’s Chairman, Johann Rupert, Richemont performed well in line with the management and most importantly investors expectations. Although wholesale demand for the entire period was weak, extraordinary growth in the Maisons’ retail sales offset this adverse situation.
Richemont has always backed its Jewelry business, even in difficult times, and it’s the result of the continued hard work of the entire workforce that Jewelry sales now covers 1/3rd of the overall sales of Richemont. Richemont will try its best to continue this performance in 2016 as well.
