The Performance Of The Group Has Met With Crisis. Wholesalers Wait For Price Adjustment.

In a profit early warning last month, Richemont SA said that the weakness of the euro exchange rate resulted in a large non cash loss in the financial instruments purchased by market value, resulting in a sharp regression in net profit.

However, thanks to the one-time proceeds from the sale of retail property in New York in the first half of July, the annual operating profit increased by 10% to 26 million 700 thousand euros per annualized year. After that, the operating profit was only 0.4% higher than last year's 24 million 270 thousand euros, far less than the 6% expected by the market.

But the group's annual dividend of 1.60 Swiss francs per share is still more than 1.40 Swiss francs predicted by the market.

At the time of the deadline, Compagnie Financi re Richemont SA (CFR.VX) narrowed to 1.32% in early trading, to 85.70 Swiss francs.

The world's second largest luxury group, Compagnie Financi re Richemont SA (CFR.VX), published in the full 2015 fiscal year report released yesterday yesterday, showed that the net profit for the year ended March 31, 2015 was 35.4% year-on-year decline, falling from 1 billion 334 million euros in the 2014 fiscal year to about 1 billion 334 million euros, with a net profit of 1 billion 350 million euro.

At the same time, the group disclosed that the annual sale of fixed exchange rate in April was significantly reduced by 8%, which is totally out of the market expectation. The market is expected to grow by 2.8%. According to the actual exchange rate, it will grow by 9% annually under the promotion of the weaker euro. All markets except the Asia Pacific region will achieve growth. Hongkong and Macao will continue to drag on the overall performance of the Asia Pacific region.

In addition, as wholesale partners waited for the group to adjust prices in May, wholesale business in April was far worse than retail business, but the situation began to normalize in the first two weeks of May.

In the face of the sharp fluctuations in the exchange rate of major international currencies, Richemont SA has already raised its price in the euro area and lowered its pricing in the Asian market.

The group said it would continue to adjust the retail prices of Swiss made goods in various markets according to foreign exchange fluctuations.

Also, at the beginning of the year, the SNB suddenly announced the cancellation of the lower exchange rate against the Swiss franc, resulting in a sharp rise in the Swiss franc, against Richemont SA, headquartered in Switzerland.

Bring severe impact.

The group said that this year will "tighten up the trousers", not only the staff will freeze the salary growth, the group's top three executives have also taken the lead in reducing salaries, but the Group Executive Chairman, Johann Rupert, has pointed out that there is no plan to lay off in Switzerland, but the group has already taken measures to improve the efficiency.

He also said that sales figures in April should not be the basis for the forecast of the whole year, and the group is positive about the future.

Compagnie Financi re Richemont SA (CFR.VX) opened 3.3% lower on Friday and reported 84 Swiss francs.

In the 2015 fiscal year, the group sold net sales of 10 billion 410 million euros, less than the 11 billion 170 million euros expected by the market, 3.9% higher than the 10 billion 23 million euro in 2014 fiscal year, narrowed to only 1% at fixed exchange rate, and 10% last year.

At fixed exchange rates, Asia Pacific sales, which accounted for 39% of the largest market Hongkong and Macao, declined by 6% to 4 billion 100 million euros, while watches and wholesale channels were particularly severe in the second half of the year.

There is a steady growth.

The European market has been sold by the jewellery department and other popular tourist destinations such as Paris, Milan, Madrid and Munich.

Driven by an increase of 6% to 3 billion 67 million euros over the same period.

America's strong local demand for jewellery has increased its annual sales by 8% to 1 billion 588 million euros.

The Middle East and Africa continued to achieve strong double-digit growth, with a total sales of 841 million euros, which exceeded 814 million euros in Japan. The latter strong passenger passenger flow in the second half of the latter year failed to offset the sequela of the first half of the year.

According to the actual exchange rate, the sales of jewelry department including Cartier Cartire, Van Cleef & Arpels Van Cleef & Arpels and Giampiero Bodino three brands increased by 4% to 5 billion 657 million euros annually.

The sales of professional watch Department increased by 4.6% to 3 billion 123 million euros, except for the count of Piaget count.

Sales of other sectors covering Montblanc brand and fashion and watch parts manufacturing business rose by 1.9% to 1 billion 630 million euros, of which Montblanc MontBlanc sold 775 million euros. It is noteworthy that the Lancel's 775 million year adjusted business deficit expanded to 64 million euros due to the weak performance of Dunhill's Langer and Dunhill Dunhill.

The group did not provide sales data for the above departments to exclude the exchange rate effect. In addition, the performance of The Net-A-Porter Group Ltd., which is merging with Yoox SpA (YOOX.MI), was not included in the statistics of other sectors.

According to the channel, the retail and wholesale channels recorded a growth of 1% to 5 billion 436 million euros and 4 billion 974 million euros after the exchange rate was removed.

Retail outlets have increased 77 direct boutiques throughout the year, and the total number of stores has increased to 1133.