PARIS: On Friday, Richemont, the owner of Cartier, announced a quarterly sales increase of 7 per cent, slightly surpassing expectations, as robust demand in the United States countered weaker demand in Asia; affluent shoppers there remained undeterred by economic uncertainty and continued to spend on luxury jewellery. The company, based in Switzerland, which also possesses the jewellery brand Van Cleef & Arpels and the watch label Piaget, reported that its sales in the fourth quarter ending March increased to 5.17 billion euros ($5.80 billion), marking a 7 per cent increase in constant currencies.
That is a bit higher than the anticipated 6 per cent, as per a Visible Alpha consensus mentioned by HSBC, and it reflects a slower pace than the 10 per cent growth seen in the third quarter. The jewellery sector recorded an 11 per cent increase in sales during the quarter, which helped counterbalance an 11 per cent drop in the watches sector, currently facing declining demand in China, where a property crisis has impacted the desire for luxury items such as watches.
Luxury groups began the year with optimism that strong demand in the U.S. would aid the sector in overcoming its largest downturn in years. Still, from mid-February, indications of a faltering U.S. economy started to appear, and widespread tariff announcements in April introduced additional uncertainty.
($1 = 0.8921 euros)
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