Richemont inaugurates the new fiscal year with results significantly higher than expected and it offers a positive shock to the entire European luxury sector. The demand for jewelry remains strong, especially in the United States and Asia, allowing the group that owns Cartier and Van Cleef & Arpels to accelerate well beyond market estimates. And so after the publication of the accounts, the Swiss holding company's stock price reached earn over 7% in the first negotiations in Zurich, dragging the main competitors in the sector upwards as well, from LVMH and Hermès to Kering, Burberry, Moncler and Brunello Cucinelli.
Richemont: Sales of €6,33 billion, double expectations.
In the quarter ended June 30, Richemont recorded revenues of 6,33 billion eurosin del% increase 17 at current exchange rates and 20% at constant exchange rates compared to the same period of the previous year. The result clearly surpassed the 5,90 billion indicated by analysts. The growth rate is almost double result compared to the 11% increase expected by analysts, confirming the group's ability to maintain high demand even in a luxury market still affected by geopolitical tensions, tariffs and weak consumption in some Asian areas.
Also the financial strength continues to strengthenAt the end of the quarter, the net financial position reached 9,1 billion euros, including an extraordinary proceeds of 400 million linked to the sale of the stake held in the duty-free operator Avolta.
Richemont: Cartier and Van Cleef & Arpels lead the race
The main push came once again from jewelry store, which represents approximately three quarters of the turnover Richemont. The division's sales grew by 24%, reaching 4,73 billion euros, far exceeding the 13,5% increase expected by analysts. The segment, which includes Cartier, Van Cleef & Arpels, Buccellati, and Vhernier, thus closed the seventh consecutive quarter with double-digit growth. High-end rings, bracelets, and necklaces continued to attract the wealthiest clientele, while entry-level products attracted a wider segment of consumers.
Richemont, according to analysts, is benefiting from the growth at both ends of the market, with the most exclusive jewels purchased by customers with greater spending power and entry-level proposals supported by a quality-price ratio considered competitive.
Positive signals have also come from specialist watchesThe division recorded a 8% increase in sales, thanks in particular to the performances of Vacheron Constantin, Jaeger-LeCoultre, and A. Lange & Söhne. The group's portfolio also includes brands such as Piaget and IWC.
Richemont: From the Americas to China, growth affects all markets.
The expansion affected all major geographic areas. In the Americas Revenues increased 27%, boosted by U.S. demand and wealth generated by rising stock markets and high revenues in the technology sector. Japan did even better, with a 36% increase driven by tourist purchases. In Europe Sales rose 11%, driven by both local customers and visitors from North America and the Middle East. In the Asia-Pacific area Revenue increased by 21%, with strong demand in Hong Kong and Macau and double-digit growth in China. This result is particularly significant because it comes at a time when many luxury goods companies continue to face difficulties in the Chinese market.
The group is returned to growth also in the Middle East and Africa, an area that accounts for just under a tenth of overall revenues, despite reporting a slight decline in sales in the United Arab Emirates.
Luxury soars on the stock market
The Swiss group's numbers immediately improved the mood across the entire sector. Richemont gains more than 6% after reaching up to 7,4% in Zurich, while in Paris Kering, Hermès and LVMH recorded increases of more than 2%. Swatch and Burberry also performed well, while Brunello Cucinelli and Moncler shine at Piazza AffariAnalysts say the results represent "a positive sign for the entire sector," although it remains unclear how much of the performance is attributable to a general recovery in demand and how much depends on Richemont's specific strength and the weight of jewelry in its portfolio.
