ZURICH (Reuters) -Richemont , the owner of Cartier jewellery, beat market expectations for third-quarter sales, it said on Thursday, in a positive sign for the high-end of the luxury sector over the all-important holiday season.
The Swiss company’s sales jumped 10% year-on-year to 6.2 billion euros ($6.37 billion) for the three months till December-end. Richemont (SIX:CFR) also owns high-end Swiss watch brands Piaget, IWC and Jaeger-LeCoultre.
At constant exchange rates – which removes the impact of currency fluctuations – sales increased 10%, beating the 1% rise expected by analysts in a consensus.
The sales figure is Richemont’s highest ever for a quarter, despite what it referred to as “still challenging” demand in China, where its sales fell 18%.
The company posted sales growth of more than 10% in other regions, which made up for the downturn in China, it said.
Rival LVMH is due to report full-year figures on Jan. 28, followed by Gucci-owner Kering (EPA:PRTP) and Birkin bag maker Hermes in February.
The luxury sector is grappling with its lowest sales growth in years as shoppers, beaten down by economic uncertainty and high prices, have cut back on discretionary spending.
The gap between stronger and weaker players has been widening, with groups catering to the very high-end, like Hermes, outperforming those with a less wealthy customer base, such as Burberry (LON:BRBY).
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