Richemont's sales increased by 10% during the holiday season, surprising analysts who predicted less than 1% growth. The results were driven by strong demand for Cartier jewelry, particularly in the Americas and Europe.
Shares of Richemont rose by up to 18% following the announcement, positively impacting other luxury brands like LVMH and Hermes, which saw gains of 8.6% and 6% respectively.
Despite a 7% decline in the Asia Pacific region, analysts noted that Richemont's performance was better than expected, although sales in China fell by 18%. The luxury market is showing signs of stabilization, particularly in jewelry, which tends to perform well during economic uncertainty.
Richemont, owner of Cartier and Van Cleef & Arpels, is positioned favorably due to its focus on hard luxury items. The final quarter of the year is critical for luxury brands due to holiday shopping.