Richemont H1 Net Income Falls to €529 Million

The world's second-biggest luxury-goods maker, Financiere Richemont AG, reported net income fell 27 percent to €529 million ($618 million) during the six months ending September 30 The company blamed new accounting standards as the reason for the fall.

The company said changes to the way it reported its stake in British American Tobacco under new accounting standards harmed bottom line results.

The Swiss company’s sales rose16 percent to €1.99 billion during the period.

The company, which owns Cartier and Vacheron Constantin watches, is increasing its focus on the diamond jewelry and luxury watch segment, recently selling men’s clothing maker Hackett. According to a report on Bloomberg, the firm is also interested in selling its Lancel leather-goods business.

In September Richemont reported a 16 percent gain in five-month revenue, helped by a 23 percent leap at its specialist watch making division, which produces the $25,000 Jaeger-LeCoultre Reverso Duetto.