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Shares in the luxury goods sector soared as Richemont said sales rose 10 percent late last year.
The Cartier owner’s figures boosted investor confidence about an industry-wide recovery this year.
The Swiss firm, whose brands also include Montblanc, grossed £5.2bn in the three months to December 31, its biggest quarterly sales.
Business was boosted as shoppers snapped up expensive jewelery items such as Van Cleef & Arpels’ £7,800 butterfly pedant necklaces.
Sales were strong in the Americas and Europe as the group hailed a “very strong” finish to 2024.
But appetite for luxury goods in China remained limited, as sales fell 18 percent in the region compared to the same period in 2023.
The new figures from Cartier owner Richemont boosted investor confidence about an industry-wide recovery this year.
Still, the results marked a resounding recovery for Richemont, which had previously posted a 1 percent drop in sales in its second quarter.
Shares rose 16 percent yesterday in Zurich to hit a new high on hopes the luxury industry could see a turnaround this year after a tumultuous 2024.
“Investors took the update as a sign that the luxury goods sector’s downturn was over,” said Russ Mold, chief investment officer at AJ Bell, with a set of results due to be released.
LVMH, the world’s largest luxury conglomerate, rose 9 percent, while Kering, which owns Gucci, rose 6 percent and Hermes 5 percent.
Britain’s Burberry rose 4 percent ahead of a trading update next Friday, when new boss Joshua Schulman will shed light on whether its revival plan paid off by Christmas.
But rival Mulberry fell more than 2 percent, failing to benefit from the industry’s momentum.
The bargain valuations of both raise fears that they could be next to be poached from the London Stock Exchange by private equity sharks.
Despite the market’s optimism, some questioned whether the luxury recovery was in full swing. #Mamta Valechha, analyst at Quilter Cheviot, said: “One of the key questions will likely be the interpretation of the rest of the sector and to what extent Richemont’s strength is brand-specific or indicative of a broader industry improvement.” It could be both.
BGM has been bleak since post-pandemic ‘revenge spending’ lost steam a couple of years ago.
High-end groups warned of lower profits and had to cut their prices last year.
China, the world’s second-largest economy, has been hit by a debt crisis in its property sector, and consumers in Britain and the United States have been hit by inflation.
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