Cartier owner Richemont has posted a sharp rise in quarterly sales as booming demand for luxury jewellery helped it outperform expectations and sparked a rally across the wider sector.
The Swiss luxury group recorded sales of €6.3bn (£5.5bn) in the three months to 30 June, up 20 per cent at constant exchange rates and 17 per cent on a reported basis.
The performance comfortably beat analysts’ forecasts of €5.9bn and marked an acceleration from the previous quarter. Richemont shares climbed around six per cent following the update, while rivals including LVMH, Hermès and Kering also gained.
Sales across the group’s jewellery division, which includes Cartier, Van Cleef & Arpels, Buccellati and Vhernier, jumped 24 per cent to €4.7bn.
It marked the division’s seventh consecutive quarter of double-digit growth, with Richemont reporting strong demand across its brands, regions and sales channels.
Its specialist watchmakers, which include IWC, Piaget, Jaeger-LeCoultre and Vacheron Constantin, delivered an eight per cent sales increase, while its other businesses rose nine per cent. This division includes fashion brands Chloé and Alaïa, as well as Montblanc, Dunhill and Watchfinder.
Retail sales increased 24 per cent and accounted for 71 per cent of group revenue, while online sales climbed 18 per cent. Wholesale and royalty income advanced nine per cent.
Richemont reported double-digit growth across most of its major markets, led by a 36 per cent surge in Japan and a 27 per cent increase across the Americas.
Asia-Pacific sales rose 21 per cent, supported by strong performances in Hong Kong, Macau, South Korea and Taiwan. Combined sales across China, Hong Kong and Macau returned to double-digit growth, despite sales in mainland China remaining slightly lower.
European revenue increased 11 per cent, helped by resilient local spending and demand from North American and Middle Eastern tourists. Richemont said the UK, France and Germany made particularly strong contributions.
Sales in the Middle East and Africa edged up three per cent as robust local demand offset a sharp fall in tourist spending caused by conflict in the region.
The group said it would continue investing in its brands despite a “persistently volatile macroeconomic and geopolitical backdrop” and rising raw material costs.
Richemont ended the quarter with a net cash position of €9.1bn, up from €7.4bn a year earlier and including €400m generated through the sale of its stake in travel retailer Avolta.
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