Richemont: shares dragged down by margin pressures
(CercleFinance.com) - Shares in Richemont dropped by more than 1% on Friday after the Swiss luxury group saw its margins pressured in the past financial year.
For the year ended 31 March, group sales increased by 27% at actual and constant exchange rates to 14 billion euros, the company said on Friday.
Excluding the online retailers YNAP and Watchfinder, sales rose by just 8% at actual and constant exchange rates, prompting operating profit to grow by 5% to 1.9 billion euros.
However, the group's operating margin dropped from 16.7% to 13.9% year-on-year due to the consolidation of the online retailers, the group said.
Richemont also said that it will propose a dividend of 2 Swiss francs per share, up 5%, although this move failed to inspire investors.
The stock is currently among the SMI index's biggest fallers, down 1% at 70.3 Swiss francs.
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