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Richemont sees sales soar

Sales at luxury goods company Richemont have risen sharply over the past five months, helped by demand in Asia.

The company behind brands Cartier and Montblanc, said sales over the period sales jumped by 35%, beating expectations. In actual exchange rates Richemont sales rose by 29% from April to August this year.

Asia led the boost with sales up 46%, followed by a 26% rise in the Americas.

The group said it expected half year sales and operating profits, which come out in November, to be “significantly higher” compared to last year.

Net earnings, however, are likely to be flat because of the strong Swiss franc.

Setting a cautious tone, chief executive and chairman Johann Rupert, said: “The rest of the financial year is difficult to predict. The problems of fiscal deficits generally and euro zone difficulties in particular are likely to act as a drag on business prospects”.

The world’s second-largest luxury goods group said the uncertain economic outlook in Europe and North America was likely to affect demand for its watches and jewellery.

Luxury goods groups have enjoyed increasing consumer spending in emerging markets like China, lessening the blow of potential economic slowdowns in the West.

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