Shares of Cartier Owner Richemont Jump 16% as SAles Rise in December Quarter

Shares of Cartier Owner Richemont Jumped on Thursday after the luxury group reported a 10% increase in fiscal third -Quarter sales even as China demand weighed.

Sales rose to 6.2 billion euros ($ 6.38 billion) at constant exchange rates in the three months to the end of December, which the swiss luxury brand dubbed its “Highest Ever” Quarterly That was well Above 1% Increase Expected By Analysts in a Consensus Cited by RBC, According to Reuters.

Richemont shares closed 16.36% Higher on Thursday.

Other luxury stocks Christian Dior, LVMH and Hermes Moved Higher at the results marked a positive signal for the health of europe’s luxury sector over the holiday shopping period.

Richemont reported Double-Digit Growth Across All Regions Except Asia Pacific, Where sales fell 7%, LED by an 18% decline in the combined regions of Mainland China, Hong Kong and Macau.

China, Once a key driver of luxury demand, has been a major drag on the sector as it has struggled to emerge from a post-Covid-19 Pandemic Macro-Economic Slump.

The swiss company’s share price has decided a Volatile Ride Over the Past Year Amid a Rejig of its top management and wider flutics in the luxury market.

The stock jumped on the may appointment of New Ceo Nicolas BosFormer Head of the Group’s Van Cleef & Arpels Jewelery Brand. Shares are currently up 28.75% on the year.

The Results Mark a return to growth for the company, which reported a 1% year-on-yar Dip in first-half sales To September, Citing a Challenging macroeconomic backdrop and tougher conditions in China. Sales for that six-month period came in at 10.1 billion euros.

The high-end group has until then an outlier in a broader luxury downturn, reporting record full-year sales in may,

Luca Solca, Senior Analyst for Global Luxury Goods at Bernstein, Said That The Thursday Results Provided a positive early signal for the return to health to health of the wider Luxury Sector.

Europe and the Asia-Pacific Region, Excluding Greater China, “Have Both Seen Strong Sequational Improvements, Driven by Higher Domestic Demand and Strong Tourist Inflows, WHILE AMERICAS CONTINE O G Local Demand, “Solca said in a note.

“We take this as an encountering sign and a confirmation – as anticipated by the market in recent week

Citi analysts added that they expect the strong results to “Support richemont shares and a broader luxury sector which has been done out of five for the past 18 months.”