Luxury conglomerate Richemont exceeded expectations in Q4 2023, reporting an 8 percent year-on-year sales increase, reaching €5.6 billion ($6.1 billion) for the period ending December 31, 2023. The hero behind this success? The demand for Richemont’s jewelry brands, particularly Cartier and Van Cleef & Arpels over the festive period.
Image courtesy: @skaufman4050
Cartier and Van Cleef stole the spotlight, contributing to the group’s positive performance against the challenging backdrop of the luxury sector. Analysts were pleasantly surprised as shares surged by 10 percent in early trading, exceeding expectations.
The growth was driven by strong demand in Greater China and Japan, where sales for the quarter rose by 25 percent and 18 percent, respectively. Even the U.S. market, facing challenges, managed to defy the broader slowdown seen by its peers in the region.
Image courtesy: @____risaaa08
Richemont’s strategic focus on the higher-priced hard luxury sector appears to be paying off This success stands out in an industry that is currently grappling with a slowdown in aspirational and middle-class consumer spending.
Despite recent complexities with Yoox-Net-a-Porter and Farfetch, Richemont remains optimistic about finding a new controlling shareholder for the loss-making business within the next 12 months. Chief Financial Officer Burkhart Grund shared during a call with investors that they have already received unsolicited interest from potential buyers.
Cheers to Richemont for starting the year on a sparkling note!
- Anna McWhirter posted 10 months ago
- last edited 9 months ago
