Shares of Compagnie Financiere Richemont AG (CFRUY.PK) increased around 6% in the morning trade in Zurich after the Swiss luxury goods group said it expects strong growth in fiscal 2013 earnings and sales, citing favorable exchange rates.
For the year ended March 31, the company expects net profit to increase by approximately 30% from last year's reported profit of 1.54 billion euros.
The company added that trading for the year showed sales rising 14% on a reported basis and 9% on a constant currency basis. Last year's sales were 8.87 billion euros.
Richemont's operating profit for the year is likely to show an increase of approximately 18% from prior year's 2.04 billion euros.
In January, Richemont said its nine-month sales climbed 17 percent as the weakening of the euro against the dollar, in particular, had a positive impact on its sales. Sales growth was 9 percent at constant exchange rates. The company experienced solid growth in the Americas, but the growth rate was lower in other regions.
The company is slated to release its results for the year to March 31 on May 16.
In Zurich, Richemont shares are currently trading at 71.90 Swiss francs, up 3.75 francs or 5.50 percent, on a volume of 1.1 million shares.
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