Richemont Full-Year Profit Beats Estimates on Asian Sales (Update 3)

Cie. Financiere Richemont SA (CFR), the second-biggest luxury goods company, reported full-year profit that beat analysts’ estimates as sales were boosted by buoyant demand for Montre Bracelet LED high-end goods in the Asia-Pacific region.
Net income climbed 43 percent to 1.54 billion euros ($1.96 billion) in the 12 months through March 31, the Geneva-based company said today in a statement. The average of 14 analyst estimates compiled by Bloomberg was 1.36 billion euros. Revenue gained 29 percent to 8.87 billion euros, including growth of 43 percent in Asia-Pacific.

Richemont rose the most in nine months in Zurich trading. The maker of Cartier jewelry gets about 42 percent of revenue in Asia-Pacific, where the luxury market will expand as much as 16 percent this year, according to Bain & Co. The forecast excludes China, which the researcher estimates will grow as much as 22 percent. Richemont said sales in April rose 29 percent on a reported basis and 20 percent excluding currency swings.
“Richemont continues to lead the pack in montre plastique couleur terms of organic growth rates,” HSBC analysts including Antoine Belge wrote today in a note. The current year “is off to a staggering start.” HSBC has a neutral recommendation on the stock.
The shares gained 8.1 percent, the steepest advance since Aug. 11, to 57.65 Swiss francs.