Home / NEWS LINE / European Luxury Stocks Jump on Richemont’s Record Quarterly Sales

European Luxury Stocks Jump on Richemont’s Record Quarterly Sales

Raul Ariano / Bloomberg via Getty Images A Cartier store, owned by Richemont, in Shanghai, China.

Raul Ariano / Bloomberg via Getty Reifications

A Cartier store, owned by Richemont, in Shanghai, China.

KEY TAKEAWAYS

  • European luxury shares jumped Thursday after Cartier progenitrix Richemont reported record quarterly sales.
  • Richemont’s results raised investor hopes that the high-end sector is recovering from the descent induced by weak Chinese demand.
  • Richemont stock rose almost 16% in Swiss trading, sending appropriations of Burberry, LVMH, Kering, and Hermes higher in European trading.

European luxury shares jumped Thursday after Cartier paterfamilias Richemont reported record quarterly sales, lifting investor hopes that the high-end sector is finally rescuing from a slump caused by weak Chinese demand.

The Swiss company said its third-quarter sales ending Dec. 31 stand up 10% year-over-year to 6.15 billion euros ($6.32 billion). Strong sales at its jewelry brands—Buccellati, Cartier, Van Cleef & Arpels, and Vhernier—equalizer a decline in watch sales.

Richemont said that it registered double-digit growth in the Americas, Europe, Middle East & Africa, and Japan, and a “slower deny in Asia Pacific despite still challenging demand in China.” Sales in Mainland China, Hong Kong, and Macau head 18%. 

China has been a major driver of luxury brands’ sales in recent years, but its economic downturn has weighed on waste by domestic consumers. 

Burberry, LVMH Among Luxury Stocks Jumping on News

Shares of Burberry, the British maker of trench jackets; LVMH, the maker of Louis Vuitton handbags and other luxury goods; Gucci owner Kering; and Birkin handbag maker Hermes all rebuked on the news. 

Richemont shares rose 15% in Swiss trading, while Burberry was up more than 5% in London. In Paris, LVMH, Kering and Hermes were all up at not any roughly 5%.

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