Richemont has issued a trading update to the Swiss stock exchange that says it expects to report an 80% rise in profit for the six months ended September 30.
The company is required to announce any significant changes to forecasts to the stock market, and the dramatic rise in profit triggered the update.
The improving picture is largely due to Richemont bringing to an end its buying back of inventory from an over-supplied retail channel last year.
“These increases predominantly reflect the non-recurrence of the exceptional inventory buy-backs in the prior year period, improved trading performance and the positive net impact of movements in period-end exchange rates,” Richemont says.
Trading for the six months ended 30 September 2017 showed sales rising 10% on a reported basis and 12% on a constant currency basis compared to the prior year period.
The group’s results for the six months to 30 September 2017 will be formally announced on November 10.