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The accounts reveal that the company’s revenue in 2016 was $5.67bn (£4.44bn), down from $6.24bn the previous year. Net profit was down 35%, from $1.34bn to $874m. Net operating profit was $1.3bn, a drop of 20% on the previous year.

The company said the disappointing results were due to “terrorist attacks in Northern Europe [that] impacted tourist flows and consequently luxury spending, which resulted in a negative performance in the first half of the year”.

However, the annual report added: “In the second half of the year, sales grew sharply … showing organic growth of 11% boosted by new launches and the creativity of the collections, in particularly the Cuba cruise collection. This, combined with the anniversary of a difficult end of 2015, helped to drive this overall growth.”

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