Richemont Warns on Profits

LONDON — Compagnie Financiere Richemont warned in an unscheduled statement that net profit for the year ended March 31 would be down some 36 percent. Parent of brands including Cartier, Van Cleef & Arpels and Dunhill, the luxury group said the “significant decrease” reflects non-cash, mark-to-market losses on financial instruments, which include monetary items and derivatives. It said the non-cash, mark-to-market losses had no material impact on the group’s net cash position, which amounted to some 5.4 billion euros, or $5.79 billion, on March 31, 2015. Richemont’s sales for the 2014/2015 year, including Net-a-porter Group, which last month merged with Yoox, would have increased by 5 percent on a reported basis and by 2 percent on a constant currency basis, compared to the previous financial year. The company noted that due to the spin-off of Net-a-porter, it plans to re-file results for the year. Richemont’s new sales figure for the year increased by 4 percent on a reported basis and by 1 percent on a constant currency basis, the company said. Richemont’s new operating profit is expected to show an increase of 10 percent, including the previously disclosed gain on an investment property disposal. The reconfigured results have no material impact on the group’s operating profit

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