Cartier owner escapes luxury gloom with upbeat sales
Richemont reported climbing sales, largely due to jewellery brands and an end-of year boost, despite a broader slowdown in luxury spending.
The Swiss group – whose brands include Cartier, Piaget and Montblanc – said sales rose by four per cent in the final three months of the year to 5.6 billion euros (US$6.1 billion).
Excluding currency effects, sales were up by eight per cent in the three months to December 31.
Earnings were boosted by a 25 per cent increase in mainland China, Hong Kong and Macau sales, which helped push 13 per cent growth across the region.
The group said its sharpest sales growth was in Japan, where sales were up 18 per cent on the back of growing domestic sales and strong tourist spending, particularly from Chinese tourists.
European sales were three per cent lower than the same period the year before, however.
Richemont shares climbed more than 10 per cent on the Swiss Stock Exchange on the back of the company update.
Jewellery saw the strongest sales increase at 12 per cent, followed by a modest climb for watchmakers. The group’s other business areas, which is mostly fashion, saw sales slide by one per cent.
Richemont’s mostly upbeat results bucked a trend of downbeat reports from other luxury groups in recent weeks.
British luxury brand Burberry announced sliding net profit during its first half, and last week it issued a warning over its upcoming results.
British chain Watches of Switzerland, which specialises in luxury watches, said the holiday period had been very “volatile” for the luxury sector and issued a profit warning.