"Both companies reduced their losses and Lancel reached a very important milestone this year, reaching breakeven," said Platt. "Dunhill has made a significant improvement, and we are optimistic about its potential."

Overall sales grew fastest in the Asia-Pacific region, with China driving growth.

Cartier, which generates the bulk of Richemont's sales, saw double-digit sales increases in all regions except Japan, where there was moderate growth. Van Cleef & Arpels also posted good growth, the statement said.

Watch brands Panerai and A. Lange & Söhne helped drive growth in the watch division, which was 21 percent in the period.

Antoine Belge, an equities analyst at HSBC, said the bank still considers Richemont's brand portfolio to be the strongest in the industry, and that the April sales gain was very strong.

He called the 2006-07 results "excellent," but fears the weak dollar and yen might hurt the company in the future. "There is plenty of cash everywhere, people are splashing out on spending. It's just that we have become a bit cautious in our outlook," he said.