Richemont sales unexpectedly jumped by double digits during the holiday shopping season as consumers splurged on the Swiss luxury group’s Cartier jewellery.
Sales at constant exchange rates climbed 10% during the three months through December, Richemont said in a statement Thursday (Jan 16). Analysts had expected a gain of less than 1%.
The Americas and Europe drove the strong performance.
Richemont and other luxury firms had been facing cooler demand for high-end goods after years of aggressive price increases, and the results suggest the beginnings of a recovery.
Even the company’s performance in the Asia Pacific region, where sales slid by 7% in the past three months, was much better than estimates.
In mainland China, where shoppers have shown a weaker appetite for luxury amid worries about the health of the real estate market, sales dropped 18% in the quarter.
Read more: Shhh, no logos and labels... How quiet luxury endures as a fashion trend
Richemont owns Cartier and Van Cleef & Arpels, two sought-after jewellery brands. This part of the market, known as hard luxury, tends to do better in times of uncertainty as jewellery tends to be more timeless than handbags and other fashion items.
Richemont’s watch segment also did much better than estimates, with revenue falling less than expected.
Some companies catering to the very wealthy have weathered the luxury downturn better than those appealing to the less well-off.
Earlier this week, Brunello Cucinelli SpA posted strong quarterly revenue and forecast sales growth of 10% this year and next. The Italian brand sells cashmere and vicuna bomber jackets for €17,500 (approximately RM81,000).
LVMH Moet Hennessy Louis Vuitton SE, the world’s biggest luxury group, will report earnings on Jan 28. – Bloomberg
