Cartier owner posts record sales despite China slump

Zurich, Switzerland — Cartier owner Richemont reported record quarterly sales on Thursday, beating expectations as a slump in key market China was offset by robust demand in other regions.

The group said sales reached 6.2 billion euros ($6.3 billion) in its financial third quarter ending on December 31, a 10 percent rise from the same period in 2023.

The performance, which includes the key holiday shopping season, was stronger than forecast by analysts surveyed by Swiss business news agency AWP who had expected sales to reach 5.6 billion euros.

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Sales in the Asia-Pacific region fell seven percent in the third quarter, dragged down by an 18-percent drop in China, Hong Kong and Macau.

China is a major market for luxury companies but the sector’s sales were hit last year by weak domestic consumption in the world’s second biggest economy.

Richemont reported healthier sales elsewhere in Asia, with “positive results” in most countries and double-digit growth in South Korea.

In Japan, whose performance is counted separately from the rest of Asia, sales rose 19 percent.

Sales in Europe also surged 19 percent as local shoppers and tourists from North America and the Middle East splurged.

They were up 20 percent in the Middle East and Africa, led by the United Arab Emirates and spending from tourists.

“It seems that despite the challenging situation in China and in watches, Richemont has never been stronger,” said Jean-Philippe Bertschy, analyst at investment firm Vontobel.

Richemont shares soared around 15 percent on the Swiss stock exchange in morning deals.