ZURICH (Reuters) – Richemont, the owner of Cartier jewelry, beat market expectations for third-quarter sales, it said on Thursday, in a positive sign for the luxury sector during the all-important holiday season.
The Swiss company’s sales jumped 10% year-on-year to 6.2 billion euros ($6.37 billion) in the three months to the end of December. Richemont (SIX:) also owns top Swiss watch brands Piaget, IWC and Jaeger-LeCoultre.
At constant exchange rates – which strips out the impact of exchange rate fluctuations – sales rose 10%, beating the 1% increase expected by analysts in the consensus.
The sales figure is Richemont’s highest ever for the quarter, despite what it called “still challenging” demand in China, where its sales fell 18%.
The company posted sales growth of more than 10% in other regions, offsetting a decline in China, it said.
Rival LVMH is due to report full-year figures on January 28, followed by owner Gucci Kering (EPA:) and Birkin bag maker Hermes in February.
The luxury sector is struggling with the slowest sales growth in years as buyers, battered by economic uncertainty and high prices, cut back on discretionary spending.
The gap between the stronger and weaker players has widened, with groups that supply high-end, such as Hermes, outperforming those with a less affluent customer base, such as Burberry (LON:).
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