STOCKS | Richemont Sales Grow Despite Uncertain Market Conditions

Richemont reported 13% year-over-year sales growth at constant exchange rates in the second quarter of its fiscal year, which ended in September. According to Sina Finance, quarterly sales totaled €5.95 billion, above the Visible Alpha consensus estimate of €5.895 billion. Jewelry sales, the group’s main growth driver, rose 14%, while watch sales increased 12%. Richemont owns jewelry brands including Cartier and Van Cleef & Arpels. Expectations for a luxury spending recovery have cooled in recent weeks. Several major companies, including LVMH, have reported weak sales, with subdued consumer sentiment in China, a key market, a major drag. Bernstein analysts said jewelry’s resilience, growth and pricing power benefited Richemont despite challenging market conditions. Chairman Johann Rupert said Richemont delivered strong results amid geopolitical and macroeconomic turbulence. He added that uncertain market conditions were expected to persist for some time. Excluding exchange-rate fluctuations, Richemont’s first-half revenue rose 17% year over year to €12.28 billion, slightly above the market estimate of €12.22 billion. Net profit increased to €2.53 billion from €1.8 billion a year earlier, while the operating margin rose 330 basis points to 25.5%.