Richemont: Q3 sales increase by 10 percent to 6.15 billion euros

Zurich – Swiss luxury giant Richemont reported better-than-expected sales for its third quarter on Thursday, despite pressure on demand in China, posting double-digit growth in its other major markets.

For the period from October to December 2024, the group, which owns the Cartier jewelry house among others, saw its sales increase by 10 percent compared to the same period a year earlier, to 6.15 billion euros, driven by jewelry, it said in a statement. Analysts polled by the Swiss agency AWP had expected an average of 5.59 billion euros.

During this quarter, which encompasses the holiday season, its sales jumped by 19 percent at constant exchange rates in Europe, thanks to local demand but also to tourist spending, particularly from North America and the Middle East. Sales also grew by 22 percent in the Americas and 20 percent in the Middle East and Africa.

Sales in Asia Pacific, however, fell by 7 percent, dragged down by China, Hong Kong, and Macau, where they declined by 18 percent. Other Asian markets, however, saw improved sales, the statement said.

Japan, which is reported separately from the rest of Asia, posted a 19 percent increase in sales. The group's sales during this quarter grew by 14 percent in jewelry, offsetting an 8 percent decline in its watchmaking business.

In a report published mid-November, Bain & Company noted that some luxury consumers reduced their purchases in 2024 due to economic uncertainties and price increases in the sector. But pockets of growth remain, including in fragrances and high-end jewelry, it emphasised. (AFP)