Le luxury quarterly have gained traction with the results of BRUNELLO CUCINELLI, who opened the season on Monday, followed by the very positive numbers of Richemont. In the third quarter of 2024, the Swiss giant that owns Cartier recorded a 10% increase in sales at constant exchange rates, reaching a historic record of 6,2 billion euros. A surge that dragged along the entire sector, confirming the good time for luxury European, despite weak demand in China. Now, all eyes are on lvmh, the French giant that will reveal its numbers on January 28th.
Richemont accounts drive luxury, Moncler rally in Milan
A Business Square, the rally of Richemont (+17,1%) kicked off an explosion of increases in the luxury sector, with Moncler (+ 8,08%) and Kering (+8,69%) in the lead followed by Ferragamo (+ 6,04%) and Hermès (+5,16%). Also Prada (+4,3%) and other stocks such as Brunello cucinelli (+ 2,16%) and lvmh (+2,2%) benefited from the positive effect generated by the Swiss giant's better-than-expected results. Expectations of a recovery in consumption, fueled by economic stimulus in China and the revival of the American economy, have given new impetus to investors, who seem optimistic about the sector's recovery. Richemont's results, which were released today, were the first test.
Richemont: Sales up, but China slows numbers
The Swiss luxury giant closed the third quarter of the 2024 financial year with very positive results. The sales increased by 10% at constant and effective exchange rates, reaching EUR 6,2 billion, the best quarterly result ever. Growth was recorded in all regions, with exception of the'Pacific Asia, which saw a 7% contraction, mainly due to the sales decline in China (-18%).
The improvement was particularly evident compared to the first half of the year, with the most marked acceleration recorded in the segment “Jewelery Houses“, which marked a +14%. Total sales for the first nine months of the year rose to 16,2 billion euros (+4% at constant exchange rates). In addition, the net cash position increased to 7,9 billion euros, confirming the financial solidity of the group.
Upcoming events and expectations for the sector
Attention now shifts to other important issues luxury companies, with in the front row lvmh. If the numbers from Bernard Arnault's group were to beat expectations, it could trigger a rally in the sector, boosting the main European indices. Other companies, such as Hermès, Burberry, Zegna e Ferragamo, are ready to reveal their accounts in the coming days. In February, it will be the turn of Kering, Moncler e Hermès, while Prada will close the accounting season in March.
Analysts are optimistic, expecting managers of luxury giants to signal signs of recovery in conference calls, despite the overall picture remains uncertain, with China's real estate market still struggling and rising raw material costs likely to weigh on margins. Among the strongest stocks, LVMH leads the way, followed by Richemont and Hermès, all with solid "buy" ratings.