Cartier Owner Richemont Sales up 7% as Jewellery Shines
Cartier owner Richemont on Friday reported a slightly better-than-expected 7% rise in quarterly sales as weaker demand in Asia was offset by brisk business in the United States where wealthy shoppers shrugged off economic uncertainty and continued to splash out on luxury jewellery.
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 ($5.80 billion), a 7% rise in constant currencies.
That is slightly more than the 6% expected, according to a Visible Alpha consensus cited by HSBC and slightly slower than the 10% growth rate in the third quarter.
The jewellery division posted an 11% rise in sales over the quarter, helping to offset an 11% decline from the watches division, which is suffering from a slump in demand in China, where a property crisis has weighed on appetite for luxury purchases like timepieces.
Luxury groups started the year with hopes that robust demand in the United States would help lift the sector out of its biggest slump in years, but from mid-February, signs of a weakening US economy began to creep in and sweeping tariff announcements in April brought more uncertainty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
3 hours ago
- Arab News
In the wake of the WEF's challenges, neutrality and good governance are paramount
Geneva, Switzerland, is a hub for international cooperation. The city has provided a venue for dialogue among governments and nongovernmental organizations alike since the early 20th century, bolstered by critical aspects of the Swiss DNA: neutrality, good governance and a tradition of dialogue for impact and peace. Since its founding in 1971, the World Economic Forum, under the leadership of its founder Klaus Schwab, started as a private foundation and eventually became an official Swiss international organization guided by the mission statement: 'Committed to improving the state of the world.' The WEF and its annual gathering in Davos evolved from a European industrial conclave into the world's most influential event for brand building, networking and addressing the topics of the day among political figures, business leaders, NGOs and the social sector. The WEF today, however, is facing an impasse. As a perceived neutral platform for dialogue, for decades the WEF offered a unique value proposition geopolitically, from the Cold War period through the Middle East peace process and the end of apartheid in South Africa. This neutrality came into question in 2022 following the war in Ukraine. At that point, the WEF followed political pressure from the US, the EU and Switzerland, turning away all stakeholders, political and civilian, from Russia, thereby taking sides in the conflict and stifling dialogue. When asked directly why the Russians were excluded, one WEF representative at the time cited the excuse that 'Russia invaded a sovereign country' as a justification for the WEF's unprecedented political stand. This situation has played itself out historically with the US-UK invasion of Iraq in 2003, when moral justifications regarding human rights violations were used on a selective basis to underscore what was later revealed to be the false pretense of weapons of mass destruction. Moreover, without skipping a beat, the following January, the WEF invited the US and UK governments, their allies and other stakeholders to Davos, despite their invasion of a 'sovereign country.' As a perceived neutral platform for dialogue, for decades the WEF offered a unique value proposition geopolitically. This fault line is one, which, compared to Western countries, counterparts from the Arab Gulf to the BRICS and the Global South have addressed in a more pragmatic way. Instead of focusing solely on the Western, pro-NATO enlargement narrative, they have considered, rightly, their own business and economic interests and interlinked global geopolitics over the principles of so-called sovereignty and invasion. In terms of its own internal governance, the WEF has come under scrutiny in the past few years following a series of journalistic reports, notably from The Wall Street Journal, which started with looking into gender and inclusion policies and which ultimately led to the resignation of the founder. In the last month in particular, several alleged governance questions have emerged about Schwab, his family, the board and select members of the management team. While independent investigations are underway under the eyes of the Swiss authorities, and innocence is presumed until proven otherwise, it is important that these events not neglect a critical aspect: these issues — if true — would not have occurred had proper measures been installed to ensure good governance, checks and balances, and the proper oversight of what is today an official Swiss international organization. According to the bylaws of the WEF, Schwab has the right to appoint his own successor and either he or a member of his immediate family sits on the board of trustees. Schwab will therefore likely continue to pursue his own case and deny the allegations of wrongdoing that have been lodged to protect his own personal reputation and, even more so, his legacy. The authorities and the current board of the WEF may need to find a compromise, including naming him honorary chairman and/or meeting other demands. Serious questions must be addressed about how so many alleged internal issues were allowed to precipitate over an extended period without board members supposedly being aware. Beyond the organizational culture that was variably criticized in the media, it appears as though board members failed to ask the right questions or address issues, as did the regulators, in compliance with Swiss law, which mandates regular audit. The current circumstances should therefore give the WEF pause to pose some of the difficult values-based questions for an organization that is charged with convening the world's elite around the most pressing global challenges. Moreover, the WEF's partners, notably business and wealthy governments, finance its $500 million annual budget. If the WEF is going to continue to accept these financial contributions, it must also be held accountable. Against this backdrop, and at a moment when global leadership is under great scrutiny and redefinition, multistakeholder leaders have options to choose between myriad different events and initiatives for building their influence and collaboration, ranging from the Milken Institute to the Future Investment Initiative. Now is the time, however, for the WEF to revisit its purpose and decide if it will become one of the many hubs for corporate networking and deal-making or if it will stay true to its DNA: serving as a neutral platform, with good governance and focused on real impact. • Khalid Abdulla-Janahi, chairman of Vision3, has over 30 years of experience in banking and financial services.
Arab News
6 hours ago
- Arab News
Pakistan formally initiates talks with US on ‘reciprocal tariffs' amid export concerns
KARACHI: Pakistan has formally begun negotiations with the United States over newly imposed 'reciprocal tariffs,' an official statement said on Friday, with Finance Minister Muhammad Aurangzeb holding a conference call with US Trade Representative Ambassador Jamieson Greer to launch the process. The talks come after US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Defending the action, Trump said the tariffs were necessary to correct trade imbalances and counter what he described as unfair treatment of American goods abroad. Pakistan was among the countries affected, with a 29 percent tariff placed on its goods at a time when Islamabad is pushing for export-driven growth. Aurangzeb called the development both a challenge and an opportunity to reset trade ties in April, adding that a high-level delegation would soon travel to Washington to pursue the matter further. 'Pakistan's formal negotiations on US reciprocal tariffs kick-started between Mr. Muhammad Aurangzeb, Pakistan's Finance Minister and Ambassador Jamieson Greer, United States Trade Representative through a telephonic/conference call on 30th May, 2025,' the finance ministry said. 'The two sides exchanged their viewpoint through a constructive engagement with the understanding that technical level detailed discussions would follow in the coming few weeks,' it added. The ministry said both sides expressed confidence in advancing the negotiations toward a successful conclusion at the earliest. The US is Pakistan's largest export destination, and the newly imposed duties threaten to undermine Islamabad's fragile economic recovery. According to Pakistan's central bank, the country exported $5.44 billion worth of goods to the US in 2024. From July to February of the current fiscal year, exports to the US reached $4 billion, up 10 percent from the same period last year. Nearly 90 percent of those exports are textiles, which analysts say will be hardest hit. Experts have also warned previously the tariffs could reduce Pakistan's competitiveness, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.
Al Arabiya
6 hours ago
- Al Arabiya
America's next top general in Europe will also lead NATO, officials say
US President Donald Trump will maintain the traditional role of a US general at the helm of NATO, at least for now, three US officials, a Western official and a NATO source said, even as Washington pushes European allies to take more responsibility for their security. Trump himself privately communicated the decision to NATO Secretary General Mark Rutte, the Western official said, speaking on condition of anonymity. The Pentagon, White House and NATO did not immediately respond to requests for comment. The decision will relieve European NATO allies and even some of Trump's fellow Republicans amid concerns that Washington's tough talk on Europe, and skepticism about the war in Ukraine, could signal a swift retrenchment in America's military leadership. Still, officials say US warnings that Trump's administration needs to shift its focus to Asia and homeland security are sincere. While no decisions have been made, Trump's administration has discussed possible troop reductions in Europe, where about 80,000 US personnel are based today. The next expected US nominee for the positions of both Supreme Allied Commander Europe (SACEUR) and US European Command (EUCOM) is Air Force Lieutenant General Alexus Grynkewich, the US officials said. The US officials spoke on condition of anonymity ahead of an announcement expected in the coming days. The position of SACEUR, which oversees all NATO operations in Europe, has been filled by a US general since its creation after World War Two. US Army General Dwight D. Eisenhower became the alliance's first SACEUR in 1951. Since taking office in January, Trump's administration has pressured Europe to ramp up its own defense spending, saying Europe should be primarily responsible for defense on the European continent. How quickly Europe assumes such a role remains a big question, and there have been discussions within the administration about the possibility of handing over the job of Supreme Allied Commander Europe to a European nation, officials say. 'Make no mistake: President Trump will not allow anyone to turn Uncle Sam into 'Uncle Sucker',' US Defense Secretary Pete Hegseth told reporters during a visit to NATO headquarters in February. During Trump's first term, maintaining NATO and the leading US role in the alliance was a top priority for his Pentagon chiefs. Retired Marine Corps General Jim Mattis, his first defense secretary, resigned in part because of Trump's skepticism towards NATO. While the United States was still expected to pressure Europe to do more, and could in the future start redirecting US troops elsewhere as part of a broader review of US deployments, the US decision to maintain the role of SACEUR is certain to be welcomed by key allies of Trump in Congress. The two Republican lawmakers who lead the Pentagon's oversight committees in the US Congress issued a rare joint statement in March expressing alarm about a potential US withdrawal from the SACEUR command structure. Grynkewich, who is now the director for operations at the US military's Joint Staff, would succeed Army General Christopher Cavoli, who has been in the role since shortly after Russia's 2022 invasion of Ukraine, helping oversee billions of dollars in US security assistance to Kyiv. Trump entered office in January predicting he would be able to end the war in Ukraine in 24 hours. In the months since, he has found that the conflict is more intractable than he believed and has blamed his predecessor, Joe Biden, for allowing it to happen.
