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Among its five main business divisions, fashion and leather goods — the largest — saw revenue fall 8%. Selective retailing was flat year on year. Watches and jewelry declined 1% in reported terms but rose 3% organically, while perfumes and cosmetics, and wines and spirits, fell 3% and 9%, respectively.
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The market reacted positively to the news, with Block's shares rising by nearly 30 percent in extended trading following the announcement.
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"We are always looking at ways to avoid increasing our prices such as by working with different sugar manufacturers," Hartwig says. "But a lot of our suppliers we have known for years and they've become friends, so it gets tough.
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