Watch the Profit
July 9th, 2009
The third prime luxury goods provider worldwide called Richemont, has released a statement which explained that their profits are down this year in contrast to last year.
The chief executive appeared at an interview on Wednesday to a throng of journalists where he was quoted as saying that the firm in its current state would earn less for their Royal London Watches than last year but had taken steps including a seizure on the hiring of new staff as well as cutting the number of positions, so that the company would see out this exceptional financial crisis.
Everybody across Europe is hoping for a significant reversal in the financial mood by Christmas, however retail merchants especially are bracing themselves for a difficult third and fourth quarter, although they will be pleased if they are wrong.
He never had any way to forecast any turnabout in the US luxury watch market just yet and was unwilling to anticipate whether the financial crisis in Europe had really bottomed out yet; he in fact hinted that the financial crisis was still in full swing, and could have a little bit more to give.
It has been suggested that the requirement for the majority of costly watches has has been taking a battering recently, although the Richemont brand isn’t showing the same signs of having been as dramatically effected as gravely as some of the brands in the Swiss watch market.
However the slack has been taken up by various other markets including the Chinese market which Richemont disclosed would be its one biggest market within three years; quite probably overtaking that of Japan.
Some have leveled the acusation that the company did not contrive to take over or obtain any additional companies at the present moment as it was not a primary priority, however Richemont could well afford some acquisitions given its current net liquidity of over 820 million at the end of March this year. These CEO also restated that should more funds be wanted these could be easily accessed via the normal capital markets, and only this specific strategy is not a priority at present.
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