Zurich (AFP) – Swiss luxury group Richemont, owner of Cartier and other iconic luxury brands, on Friday reported sales ahead of analysts’ forecasts, notably thanks to strength in its jewellery division. A rebound in some Asian markets, especially China, also contributed to its performance, resulting in sales of 10.6 billion euros ($12.3 billion) between April and September — the first half of Richemont’s financial year — a rise of five percent. Stripping out exchange rate factors, the increase was 10 percent, the company said. The sales figure compares with an analysts’ consensus forecast compiled by the AWP agency of 10.4 billion euros.
Richemont chairman Johann Rupert called the group’s performance “solid,” saying in a statement it had been achieved “against a persistently complex macroeconomic and geopolitical backdrop.” Richemont’s net profit came in at 1.8 billion euros, a massive increase over the 457 million reported a year earlier when profits were weighed down by a major asset writedown. Sales growth was in double digits in Europe, the Americas, and the Middle East, while China, Hong Kong, Macau, and Japan returned to growth.
Strong demand for jewellery boosted the sales of brands Buccellati, Cartier, Van Cleef & Arpels, and Vhernier by six percent in the reporting period, with momentum accelerating in the second quarter. “Against the backdrop of significant currency movements, higher raw material costs, and, to a lesser extent, the initial effect from additional US duties, the Jewellery Maisons implemented measured price increases whilst managing their costs efficiently,” Richemont said.
Richemont’s results announcement coincided with a visit by Swiss economy minister Guy Parmelin to Washington in the hope of reducing steep tariffs imposed by President Donald Trump. Trump stunned Switzerland in August when he imposed 39-percent duties on imports of goods from the country, among the highest in his global tariff blitz.
Looking ahead, Richemont said it was “evident that we will need to continue navigating through uncertain times, given that recovery paths remain unsteady, for instance in China, and that external pressures show no sign of abating.” Investors welcomed the set of results, pushing Richemont’s share price up by nearly eight percent to 174 Swiss francs in early Friday business on the Zurich stock exchange.
© 2024 AFP
