Luxury goods maker Richemont on Friday reported a 46% slide in net profit to €1.21bn in the year to March partly due to the one-off gain on the merger of Net-A-Porter with Yoox in 2015.
Excluding this exceptional item, net profit would have dropped 24%, the maker of Cartier watches said in a statement.
Total sales for the period under review dropped 4% to €10.64bn on both an actual and constant currency basis.
Excluding exceptional initiatives to improve inventory at multi-brand retail partners and optimise certain retail and wholesale locations, the decline in sales would have been contained to 2% at constant exchange rates, the company added.
Europe accounted for 29% of the overall sales, with Asia-Pacific contributing 37% and the Americas 17%.
Sales of jewellery, leather goods and writing instruments grew, while watch sales declined, in part due to the buy-back initiative.
The Swiss company that is listed on the JSE increased its net cash position by €452m to €5.8bn. The proposed dividend was Sf1.80, which was up 6% on the year-earlier period.