Driven by strong demand in the Americas and Europe, Richemont, the parent company of Cartier, saw its sales soar by 10% in the third fiscal quarter, reaching a record high for quarterly sales, and its stock price surged accordingly.
On Thursday, the Swiss luxury group Richemont released its sales report for the third fiscal quarter. The data showed that in the three months ending December:
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Sales: At constant exchange rates, the company achieved sales of €6.2 billion (approximately $6.38 billion), a year-on-year increase of 10%, far exceeding analysts' expectations of 1%.
Business Sales: Among these, jewelry brand sales increased by 14%; sales of watchmaking brands decreased by 8%; sales of &#34;other&#34; brands increased by 11%, with fashion and accessories brands seeing a 7% increase.
Regional Sales: All regions, except for the Asia-Pacific, achieved double-digit growth. Sales in the Asia-Pacific region decreased by 7%, while the Americas, Europe, the Middle East, and Africa achieved growth of 22%, 19%, and 21%, respectively.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5368280d-ce1f-441e-b993-c5ddcc35581b.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5368280d-ce1f-441e-b993-c5ddcc35581b.png"/>
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Stimulated by this positive news, Richemont's stock price surged by 17.58%, and the company's stock has risen over 21% year-to-date.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/39a8e008-fc71-4bec-8ed9-ad2edb10ee13.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/39a8e008-fc71-4bec-8ed9-ad2edb10ee13.png"/>
Over the past year, due to adjustments in the senior management team and overall fluctuations in the luxury goods market, Richemont's stock price experienced significant volatility. Additionally, due to a challenging macroeconomic backdrop, the company's sales in the first half of the year ending September 2024 saw a year-on-year decline of 1% at one point.
Analysts believe that it was consumers' willingness to purchase Cartier jewelry that helped Richemont achieve unexpected double-digit growth in sales during the holiday shopping season. The results announced today indicate that the health of the European luxury goods industry during this period is good. Luca Solca, a senior analyst at Bernstein Global Luxury, also stated:
<blockquote>
“This performance report provides a positive signal for the recovery of the entire luxury goods industry. Europe has seen strong sequential improvement, mainly due to increased domestic demand and robust tourist inflows, while the Americas continue to be driven by strong local demand.”
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Other luxury stocks such as Dior, Louis Vuitton, and Hermès also rose, with LVMH increasing by as much as 8.6% in Paris, and Hermès rising by 6%. Goldman Sachs' European luxury index recorded its largest increase since March 2022.
Citigroup analysts also expect that the strong performance will &#34;support Richemont's stock price and boost the entire luxury sector, which has underperformed over the past 18 months.&#34;
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Richemont, the parent company of Cartier, reported a 10% year-on-year increase in sales for the third fiscal quarter, reaching €6.2 billion, exceeding analysts' expectations, with the stock price soaring by 17.58%. Strong demand in the Americas and European markets drove sales growth, particularly with a 14% increase in jewelry brand sales. Although sales in the Asia-Pacific region declined by 7%, the overall performance indicates signs of recovery in the luxury goods industry, with other luxury stocks also rising

- Richemont, the parent company of Cartier, reported a 10% increase in third-quarter sales, reaching a record high of €6.2 billion ($6.38 billion), driven by strong demand in the Americas and Europe.  
- Sales growth was notable in jewelry (14%), while watch sales fell by 8%, with all regions except Asia-Pacific showing double-digit growth.  
- The positive results indicate a healthy luxury market in Europe, boosting Richemont's stock by 17.58%, and signaling recovery for the luxury sector overall.

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Cartier's parent company reported a better-than-expected 10% increase in sales for the third fiscal quarter, with stock prices soaring by 17%