Luxury Giant Richemont's Outlook Has Improved, But Profits Have Declined.

Switzerland Luxury goods Giant Richemont Li Feng recently said that despite recent signs that the company has improved momentum, the company is still cautious about the outlook, because the company's data show that the net profit of the year is more than expected to decline by 44%. However, in April, the company's sales increased by 24%, which undoubtedly made the whole company see the hope again.

Richemont group is the world's second largest luxury company after LVMH. The company posted a net profit of 599 million euros as of March 31st, compared with 1 billion 80 million euros in the previous year. The reason for the decline is attributed to the reduction of distribution networks, especially in the US market. The company's operating profit margin declined from 17.9% to 16%.

company Sale The amount fell by 4.5%, from 5 billion 420 million euros to 5 billion 180 million euros. Previously analyst The net profit is estimated to be 716 million euros, with sales of 5 billion 110 million euros.

Although the company's sales have revived recently, vice president Richard Lepeu said: "we will remain very cautious. Because there are still many fluctuations. Of course, the western market is hard to keep up, but the Asian market is a bright spot.

Richard Lepeu also said that Richemont group still saw some acquisition opportunities. Now the company's cash flow reaches 1 billion 900 million euros, which is very strong. But he did not elaborate on this.