By Andrea Figueras
Cartier owner Richemont reported an acceleration in sales growth for its most recent quarter despite a hit from the Middle East conflict, saying it benefited from strong jewelry demand across regions.
The Swiss luxury-goods company's exposure to jewelry and wealthy clients has helped it continue to post top-line growth even as some of its peers struggled with weaker demand, at a time when economic and geopolitical instability cloud the industry's prospects.
Richemont said Friday that sales came to 5.4 billion euros ($6.27 billion) for its fiscal fourth quarter ended March 31. This was 13% higher on year at constant exchange rates and slightly above analysts' estimates of 5.31 billion euros. In the preceding quarter, sales climbed 11% compared with the year-earlier period.
The core jewelry business, which houses heavyweight brands such as Cartier and Van Cleef & Arpels, recorded a 16% increase in quarterly sales driven by strong demand.
Shares in Richemont jumped more than 5% shortly after the opening bell, but moved down in later European morning trading.
Richemont Chief Executive Nicolas Bos said during a call with reporters that the group has seen fewer Middle Eastern tourists in Europe due to the conflict, echoing comments from other sector rivals such as Parisian high-end fashion house Hermes. Bos said the company is focused on local clients, both in Europe and in the countries directly affected by the war.
The company reported a 3% sales decline in the Middle East and Africa for the fourth quarter when adjusted for currency movements, reversing double-digit growth in the region for the prior three quarters. This was offset by growth in Asia-Pacific, the Americas and Europe.
"We are going to have to start thinking that turbulence in the world is the new normal," Richemont Chairman Johann Rupert said.
The update from the Cartier owner wrapped up the earnings season for the big European luxury groups, which analysts at Citi said was volatile and generally downbeat.
Some investors saw the luxury industry poised for an uptick in demand after a prolonged slump in the past few years, but the impact of the conflict in Iran has cast a shadow on those hopes.
Analysts see Richemont's appeal to the wealthiest shoppers, who continued to purchase luxury goods, as a hedge against the broader sector gloom.
The company's quarterly revenue growth rates seem impressive, continuing a stretch of market-leading results since the pandemic for its key jewelry segment, RBC Capital Markets analyst Piral Dadhania wrote in a note.
For the full year through March 31, Richemont reported a net profit of 3.48 billion euros, up from 2.75 billion euros a year before, on revenue that rose to 22.42 billion euros from 21.40 billion euros.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
May 22, 2026 05:03 ET (09:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments