Richemont reported its fastest holiday-season sales growth in at least a decade as consumers splurged on Cartier jewels and Chloe fashion, the latest sign that the luxury-goods market is thriving again.
Revenue climbed 32% excluding currency shifts, reaching 5.66 billion euros (R99 billion) in the three months through December, exceeding pre-pandemic levels. Analysts expected 18% growth on that basis to 5 billion euros.
The luxury-goods industry has been benefiting from a rebound in demand for jewelry, timepieces and fashion items as vaccination rates across the world increase and people socialize and travel more. Prada said Tuesday that its sales recovered to above levels seen before the coronavirus outbreak.
Jewellery was the best-performing unit, though fashion, accessories and leather goods have also been improving, a sign that turnaround efforts have been gaining traction at brands like Chloe and Montblanc.
Online sales rose 19%, slower than brick-and-mortar retail’s 45% growth. Investors are waiting to hear what Richemont’s plans are for Yoox Net-A-Porter after the company in November said it’s preparing to cede control of the unit via a deal with web-shopping specialist Farfetch.
While sales in Asia Pacific beat estimates, investors may be surprised that the increase in China, a key market for luxury, was only 7%. Revenue in that market had soared 80% in the year-earlier period.
Richemont's share price was up 5% Wednesday morning.
