Richemont sales dropped, China partially saved the situation

Richemont reported worse-than-expected results shortly before Friday's open as the Geneva-based company said a volatile trading environment had caused its net profits to slip more than anticipated. However, the world's second-largest luxury goods group noted an uptick in sales growth towards the end of its fiscal year, in large part attributable to easier comparisons and support from a sustainable recovery in mainland China, Reuters reported.

Sales at Richemont fell 4 percent at constant exchange rates in the year to March, missing expectations in a Reuters poll of analysts, but with a clear improvement in the second half thanks to a recovery in the United States and strong growth in China.

At actual exchange rates, sales also declined 4 percent to 10.65 billion euros ($11.58 billion), just slightly below a 10.68 billion euro forecast in the poll. The company proposed raising its dividend 6 percent to 1.80 Swiss francs per share.

The period was marked by a regression of demand for luxury watches . By the end of 2016, Richemont initiated a restructuring, cutting 200 jobs in La Côte-aux-Fées (NE), Geneva, and Vallée de Joux (VD).