Rupert the bear

20 May 2016 By Carol Ryan

The Cartier owner faces a drawn-out downturn in demand. April sales fell 15 percent, even compared to a terrible 2015. The Swiss group can cut costs, but the bigger problem is that luxury watch demand is less resilient than it once seemed.

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Cartier owner Richemont said organic full-year sales for 2016 fell 1 percent to 11.1 billion euros. The company’s operating profit margin excluding one-off charges fell to 20 percent from 23 percent a year earlier.

The watch and jewellery maker said it expects no improvement in the trading environment as April sales fell 15 percent at constant currencies, on top of an 8 percent decline the previous April, hit by weak demand for watches in Hong Kong and Europe.

The group’s shares were down 2.1 percent to 60.25 Swiss francs (54.17 euros) by 0920 BST.

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