Richemont quarterly sales beat forecasts on steady jewellery demand

what happened

Reuters reports that Cartier owner Richemont posted quarterly sales growth faster than analysts expected on Friday, supported by steady demand for its jewellery. Revenue climbed 13% at constant exchange rates, reaching €5.95 billion ($6.58 billion) for the period ending in September. A consensus compiled by Visible Alpha had pointed to €5.89 billion.

Jewellery sales rose 14%, while the watchmaking division grew 12%. Growth was strongest in the United States, Japan and Europe, where it reached 15% or more, though the pace slowed from 20% in the previous quarter. Jewellery brands generate roughly 75% of revenue.

First-half net profit reached €2.53 billion, up from €1.81 billion a year earlier and above the €2.26 billion analysts had forecast. Chairman Johann Rupert said, “The group delivered a strong first half, carried by sustained excellent performance of our Jewellery Maisons.”

why it matters

Richemont's jewellery-heavy mix has helped it outperform a weaker luxury sector, so its results are read as a gauge of high-end consumer spending. The company does not report quarterly earnings, so this sales update and the half-year profit are the key data points for investors.

market impact

Richemont and Swiss luxury stocks: strong jewellery sales support the shares

• ▲Richemont shares pressure up — quarterly sales and first-half profit beat analyst expectations

tags

instruments