Richemont shares jumped by over 15% today after releasing better-than-expected results for its crucial third quarter, which ended on December 31.
Sales rose annually by 10% at constant currency rates to €6.15 billion, a dramatic acceleration from a drop of 1% in the second quarter.
Results from Richemont’s Van Cleef & Arpels and Cartier jewellery maison’s lifted the entire group’s results with Q3 growth of 14%.
This offset a sales fall of 8% by its Specialist Watchmakers, which includes IWC, Panerai and Jaeger-LeCoultre, which have faced stronger headwinds than jewellery due to a greater reliance on sales to China.
China continues to drag on results in Asia, which saw sales drop by 7%, but is still Richemont’s biggest market, accounting for turnover of €1.9 billion.
It remains the group’s largest market, beating €1.65 billion in sales to the Americas; an increase of 22% year-on-year.
Japan, which has benefited from a weak yen making prices cheaper for foreign visitors, saw sales rise by 19% at constant rates to €592 million.
Europe was also up by 19% with sales of €1.5 billion.
Share prices for luxury businesses responded positively to the better-than-expected Richemont results.
Watches of Switzerland Group’s share price is up over 6% today, Swatch group’s stock is up by 5% and LVMH has risen by almost 8%.