Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

President Robert Mugabe emerges from house arrest

Read more

MEDIAWATCH

Harassment and hypocrisy in Washington

Read more

THE WORLD THIS WEEK

Military pressures Robert Mugabe to step down, Macron mediates Lebanon crisis

Read more

FRANCE IN FOCUS

France raises a glass to tourism

Read more

FOCUS

France's newest political party accused of 'old' methods

Read more

#THE 51%

Hear me roar: The growing economic power of older women

Read more

#TECH 24

The future of surgery

Read more

DOWN TO EARTH

The tiny parasite threatening your salmon sushi

Read more

ENCORE!

Director Joachim Trier: True horror is a 'lack of self-acceptance'

Read more

Richemont flags big profit rise in watch market uptick

© AFP | The luxury watch market is in better shape than a year ago

ZURICH (AFP) - 

Swiss giant Richemont, the world's second-biggest luxury goods company after LVMH, said on Tuesday it expected to post a massive rise in net profit for the first half thanks partly to a recovering watch market.

Richemont, whose portfolio includes flagship brands Cartier, Van Cleef & Arpels, Piaget, IWC and Jaeger-LeCoultre, said net earnings in the six months to September 30 would show a rise of 80 percent when it officially reports next month and profit from ongoing operations a 45 percent increase.

A year earlier Richemont embarked on a costly buyback of timepiece stocks in Asia in a bid to stop resellers from offering them at steep discount as the watch market weakened.

High-end timepiece sales saw spectacular growth between 2010 and 2014, but started to suffer when in late 2013 China cracked down on expensive business gifts in an anti-corruption drive.

Political turmoil in Hong Kong, Russia's economic crisis, attacks in Europe and the strength of the Swiss franc also all weighed on the market.

These buybacks had now stopped, explaining the sharp increase in net earnings, Richemont said.

Sales were up 12 percent at constant exchange rates and by 10 percent once converted into euros, the company's reporting unit.

Swiss stock exchange rules require companies to flag significant changes in expected earnings early. Full results are due on November 10.

© 2017 AFP