Richemont, record quarterly with revenues up 11%
The figure exceeded analysts' expectations, who had estimated an average increase of 7.5 per cent.
by Mo.D.
Key points
Record quarterly results for Richemont in the final months of last year. Christmas purchases of Cartier watches and jewellery, with demand driven mainly by the US and the Middle East, led the Swiss luxury group to record sales growth of 11% in the third fiscal quarter of this year at constant exchange rates. The figure exceeded analysts' expectations, which on average had estimated an increase of 7.5%. Sales rose to 6.4 billion euros ($7.45 billion), up 4% year-on-year at current exchange rates.
The jewellery division alone recorded a 14% progress, also higher than forecast, at constant exchange rates.
All divisions posted growth, including specialised watch manufacturers, which posted a 7% increase in sales - a particularly solid result in light of the recent weakness in the reference market as a whole. US tariffs, exchange rate trends and rising raw material costs were the variables considered by analysts and had weighed on expectations for the division, which includes brands such as Jaeger-LeCoultre and Piaget.
Group resilience
Richemont has weathered the downturn in the luxury sector better than many conmpetitors thanks to the attractiveness of high-end jewellery, often considered a more solid store of value than luxury clothing and leather goods.
In the December quarter, demand was strong in the Americas, while tourist flows from the Middle East supported sales in Europe, the company explained.
