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Swiss luxury group Richemont reported stronger than expected sales in the final three months of 2024, boosted by demand in the US and for its Cartier and Van Cleef & Arpels jewellery.
Revenues from jewellery, the core of Richemont’s business and its biggest division, reached €4.5bn, a 14 per cent like-for-like increase on the same period a year earlier and beating analyst expectations.
Sales across all divisions rose 10 per cent to €6.2bn, well ahead of consensus expectations for a 1 per cent increase, driven by high double-digit growth in the Americas and Europe.
Richemont’s sales report kicks off earnings announcements across the luxury industry, which are expected to show some improvement from previous quarters in the year, helped by a strong US market.
Luca Solca, an analyst at Bernstein, said the results had smashed expectations, meaning “the luxury goods reporting season starts on a high”.
The strong trading update provides a reassuring early indication of the sector’s performance over the important Christmas period, which followed a tough opening nine months in 2024 as China, the industry’s previous growth engine, dragged on revenues.
Richemont’s business in greater China continued to be a drag on the group’s overall performance in the three months to December, with sales falling 18 per cent compared with the same period in 2023.
This is a developing story
