Cartier owner Richemont cashes in as wealthy splash out on luxury
RICHEMONT has become the latest lux- ury goods group to cash in on booming demand as wealthy customers continue to splash out.
The Swiss company, whose brands also include Cartier, Montblanc, Alfred Dunhill and Buccellati, posted record annual sales of more than £17bn while profits hit an all-time high of around £4.5bn. Business was boosted as shoppers picked up pricey watches and items of jewellery such as Van Cleef & Arpels’ £ 7,800 butterfly pedant necklaces.
Richemont enjoyed a particularly strong rebound in China as Covid lockdown restrictions were lifted.
Shares in the company hit a record high in Zurich as it followed in the footsteps of rivals including LVMH and Hermes, which have also seen seemingly insatiable demand for luxury goods.
Jean-Philippe Bertschy, an analyst at Swiss private bank Vontobel, said Richemont’s update was further proof that the strongest labels continue to flourish even as prices rise.
‘The polarisation between strong brands with iconic pieces and weaker ones continued unabated, and accelerated in recent months due to high inflation,’ he said. ‘Richemont is very well positioned with Cartier, Van Cleef & Arpels or Vacheron Constantin.’
Richemont chairman Johann Rupert was optimistic the firm can cash in on a recovery in Chinese travel in the months ahead.
Rupert, 72, who founded the company in 1988, also quashed speculation the firm could be sold after reports that French rival LVMH had been eyeing a takeover. He said the company was ‘in constant dialogue’ with LVMH and ‘we respect each other’s independence’.
Birkin bag maker Hermes said sales in the first three months of the year were 23pc higher than in the same period of 2022. And LVMH – whose brands include Christian Dior and Dom Perignon – also reported a 17pc rise in sales.