Cartier and Net-a-Porter owner Richemont said it plans to hold on to its fashion brands quashing speculation of a major sell-off.
The Swiss based luxury goods group, which is focused on high end jewellery and watches, was rumoured to be planning a major sell-off of its smaller fashion brands, such as Chloé and Alfred Dunhill, to concentrate on its more lucrative “hard” luxury businesses such as Cartier. It had appointed bankers to sell its Lancel handbag brand
But at its half year results today it quashed rumours and said after completing a review of its fashion “Maisons” it plans “further investment” to “assure their long-term prosperity.” It added that “no disposals are under consideration at this time or for the foreseeable future.” The Lancel sale has now been pulled.
The Montblanc to Piaget group reported first half results slightly below analyst expectations, with operating profit down 0.7% to €1.37 billion when analysts expected €1.4 billion.
Like other luxury goods groups this year, it reported a fall in sales growth in Asia.
Chairman Yves-André Istel, who is standing in as chairman while Richemont's majority shareholder Johann Rupert is on sabbatical, said: “Current exchange rates are likely to weigh on our reported results. While the comparative sales figures for the important holiday trading period are less challenging, the subdued overall environment and in particular our continued investments for the long term call for increased caution.”
