In the past year, Richemont took some internally disruptive measures to make sure that the Group remains top of its game in luxury goods. A management shake-up, a right-sizing programme, and inventory buy-backs had a short-term impact on results but are now out of the system.
For the six months ended 30 September 2017, sales grew by 10% in actual currency with like-for-like sales up 8% in constant currency if the prior period inventory buy-back is excluded. Operating profit grew by 46% and by 11% if the prior period abnormal items € 249 million are excluded – a better measure of underlying performance. Similarly, the 80% rise in attributable profit to €974 million is also flattered by the depressed base and would have been closer to 30% like-for-like, assisted by substantially lower finance costs and higher finance income. EPS is €1,727 compared with €0,958.