Cartier owner Richemont sales up 7pct as jewellery shines
PARIS: Cartier owner Richemont reported a slightly better-than-expected 7 per cent rise in quarterly sales on Friday as brisk luxury jewellery business in the United States partly offset weaker demand for watches in Asia.
The Swiss-based company, which also owns jewellery brand Van Cleef & Arpels and watch label Piaget, said sales in its fourth quarter to end-March rose to 5.17 billion euros (US$5.80 billion), a 7 per cent rise in constant currencies.
That is slightly more than the 6 per cent expected, according to a Visible Alpha consensus cited by HSBC, and slightly slower than the 10 per cent growth rate in the third quarter.
The jewellery division posted an 11 per cent rise in sales over the quarter, mitigating a decline, also of 11 per cent, from the watches division, whose Chinese sales have been hit as the country's property crisis shrank the appetite for luxury purchases.
Luxury groups started the year with hopes that robust demand in the United States would lift the sector out of its biggest slump in years, but from mid-February, signs emerged of a weakening U.S. economy and tariff announcements in April brought more uncertainty.
Richemont, which caters to extremely wealthy clientele, is viewed by analysts as more resilient to a downturn than other luxury groups that rely more on fashion sales.
"Richemont continued to gain significant market share in jewellery," Vontobel analyst Jean-Philippe Bertschy said, noting the division accounted for 54 per cent of sales, compared to 36 per cent in 2019.
Bertschy also flagged what he said was spectacular growth and profit, especially when compared with competitor LVMH , which owns jewellery labels Bulgari and Tiffany, although he said Richemont was "not impervious" to the current volatile environment.
Richemont shares are up 11 per cent since the start of the year, while shares of Hermes, which also caters to ultra wealthy shoppers, are up 14 per cent. LVMH and Gucci-owner Kering are down 20 per cent and 25 per cent respectively.
Fears of a global recession have prompted downward revisions in estimates. Consultancy Bain said on Wednesday that it had lowered its annual sales forecast for global sales of luxury goods to a likely 2 per cent to 5 per cent drop, following the sector's 1 per cent decline in 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
39 minutes ago
- Borneo Post
Dr Sim urges community leaders to instil local values in Sarawak's youth
(From fourth left) Lau, Dr Sim and Hieng Wuong officiate at the event. SIBU (June 9): Deputy Premier Datuk Amar Dr Sim Kui Hian wants community leaders to instil local values and culture in Sarawak's younger generation towards nation-building. The Local Government and Housing Minister expressed his worries about the implementation of the state's free education policy starting next year, particularly for students pursuing their studies at Australian-based Swinburne University of Technology Sarawak Campus. 'Between 3,000 and 5,000 Sarawak students will receive free education at the University of Technology Sarawak (UTS) and Swinburne next year because we want high education standards, particularly Australian education. 'I am more worried for Swinburne because I am not sure if we are going to teach our students Australian education with Sarawak values. 'It is very important; otherwise, we will never teach Sarawak values to those (who will be) serving Sarawak,' he said when officiating the Sibu Chinese Community Leaders Association 20th anniversary celebration and 11th committee installation here last night. Dr Sim also expressed concern that students might migrate to Australia, enticed by well-paying jobs after their graduation, as their degrees are recognised by the country. 'It would be like we are preparing 5,000 talents every year for migration. 'This is why it is important for us, community leaders at the forefront of Sarawak government, to teach them local values. 'It is similarly impoprtant for the people to maintain unity, stability and working together for shared prosperity, especially as Sarawak's economy is expected to continue flourishing in 2030,' he added. Meanwhile, Temenggong Dato Vincent Lau was elected president of the association for the 2025-2026 term, with Pemanca Datuk Jason Tai, Pemanca Liong Khing Hee, Kapitan Fung Tat Shen, Penghulu Lau Hieng Wuong and Kapitan Ting Hua Chuan as vice presidents. Kapitan Sim Tang Fei became secretary, joined by Penghulu Lim Kuah Liew as assistant secretary. Penghulu Yong Kin Sung took on the role of treasurer, assisted by Penghulu Tiew Siik Nieng. Filling other key positions were Kapitan Chew Hoo Kiong (welfare officer), Kapitan Wong Chiew Sieng (assistant welfare officer), Kapitan Low Muong Ing (general affairs officer), Kapitan Lau Sei Kwang (assistant general affairs officer), Kapitan So Teck Kee (cultural officer) and Penghulu Kong Sien Min (assistant cultural officer). The committee included Kapitan Ling Hua Wee, Kapitan Chua Kim Seng, Kapitan Wong Jont Kiong, Penghulu Wong Ung, Kapitan Connie Loh and Kapitan Peter Lau were the committee members. Among those present were Dr Sim's wife Datin Amar Enn Ong and Deputy Minister for Public Health, Housing and Local Government Datuk Michael Tiang.
The Star
41 minutes ago
- The Star
China's May exports slow, deflation deepens as tariffs bite
BEIJING: China's May export growth slowed to a three-month low as U.S. tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. The global trade war and the swings in China-U.S. trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Exports expanded 4.8% year-on-year in value terms in May, slowing from the 8.1% jump in April and missing the 5.0% growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of U.S. tariffs on Chinese goods which had taken effect in early April. Imports dropped 3.4% year-on-year, deepening sharply from the 0.2% decline in April and worse than the 0.9% downturn expected in the Reuters poll. Exports had surged 12.4% year-on-year and 8.1% in March and April, respectively, as factories rushed shipments to the U.S. and other overseas manufacturers to avoid U.S. President Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the U.S. are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. "Export growth was likely stalled by heavy customs inspections in May due to tightened export control efforts," said Xu Tianchen, senior economist at the Economist Intelligence Unit, noting that rare earth exports nearly halved last month, while electric machinery exports also slowed significantly. Underscoring the U.S. tariff impact on shipments, customs data showed that China's exports to the U.S. slumped 34.5% year-on-year in May in value terms, widening from a 21% drop the previous month. Imports to the U.S. also lost further ground, dropping 18.1% from a 13.8% slide in April. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's import of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan program for supporting elderly care and services consumption. The measures are aimed at cushioning the trade war's blow to an economy that relied on exports in its recovery from the pandemic shocks and a protracted property market slump. China's markets showed muted reaction to the data. The blue-chip CSI300 Index and the benchmark Shanghai Composite Index were up around 0.2%. DEFLATIONARY PRESSURES Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3% in May from a year earlier, after a 2.7% decline in April and marked the deepest contraction in 22 months, while consumer prices extended declines, having dipped 0.1% last month from a year earlier. Cooling factory activity also highlights the impact of U.S. tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of U.S.-China trade talks. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery and has relied on exports to underpin growth. Retail sales growth slowed last month as spending continued to lag amid job insecurity and stagnant new home prices. U.S. coffee chain Starbucks said on Monday it would lower prices of some iced drinks by an average of 5 yuan in China. The core inflation measure, excluding volatile food and fuel prices, registered a 0.6% year-on-year rise, slightly faster than a 0.5% increase in April. However, Zichun Huang, China economist at Capital Economics, said the improvement in core prices looks "fragile", adding "we still think persistent overcapacity will keep China in deflation both this year and next." - Reuters
The Star
41 minutes ago
- The Star
FBM KLCI edges up at midday amid cautious market sentiment
KUALA LUMPUR: Bursa Malaysia ended the morning session on a firmer note, with the FBM KLCI edging higher amid cautious market sentiment and lingering external headwinds. At the lunch break, the benchmark FBM KLCI rose 3.37 points, or 0.22%, to 1,520.16, after touching an intraday high of 1,521.64. There were 437 gainers, 370 losers and 425 counters traded unchanged on the Bursa Malaysia. Turnover stood at 1.68 billion shares valued at RM888.4mil. TA Securities said immediate resistance for the FBM KLCI remained at 1,564, with stronger hurdles at the recent high of 1,586 and then 1,610. Immediate support is at 1,490, with firmer support at 1,465 and 1,444. 'As for stock picks this week, key gaming, banking, construction, and technology heavyweights and lower liners such as Genting, Genting Malaysia, Maybank, Public Bank, MRCB, WCT Holdings, Globetronics, and Inari should again attract bargain hunters looking for potential recovery at current oversold levels,' it added. Meanwhile, Hong Leong Investment Bank Research said the FBM KLCI may continue to trend sideways with a slight upward bias, supported by last week's constructive call between Trump and Xi and the commencement of the second round of US-China trade talks in London today. That said, it noted that broader market sentiment remained cautious amid ongoing foreign outflows, uncertainty over the US-Malaysia tariff deal, and June's historically weak seasonality. 'Concerns are further amplified by a weakening global trade environment, ongoing macroeconomic headwinds, the Trump administration's unpredictable trade stance, and the potential for domestic subsidy rationalisation in 2H25 — all of which may cloud Malaysia's growth and earnings outlook,' it said. On Bursa Malaysia, Malaysian Pacific Industries led the gainers, climbing 70 sen to RM20.90. Ayer rose 36 sen to RM7.60, Chin Tek added 30 sen to RM9.10 and F&N climbed 26 sen to RM27.64. Meanwhile, the top decliner was Nestle, which lost RM2.48 to RM74.64. PETRONAS Dagangan fell 36 sen to RM20.64, LPI Capital eased 26 sen to RM14.64 and United Plantations gave up 22 sen to RM21.42. Hartanah Kenyalang saw active trading on its ACE Market debut, with 16.67 million shares changing hands as the stock eased 0.5 sen to 15.5 sen.
