Richemont defied a broader luxury slowdown as demand for the Swiss luxury group’s high-end jewellery helped it shrug off a sales hit in the Middle East and outpace rivals including LVMH and Kering.Fourth quarter sales beat expectations despite disruption resulting from the US and Israel’s war with Iran, as many luxury shoppers pivot from buying handbags and fashion to jewellery. Sales at Cartier owner rose 13 per cent to €5.4 billion (US$6.28 billion; S$8.04 billion) at constant exchange rates in the three months to the end of March, ahead of analyst expectations, powered by jewellery sales that rose 16 per cent. That offset a hit to Middle East and Africa sales, which fell 3 per cent in the fourth quarter on a like-for-like basis.Chair Johann Rupert said the hit was largely due to a decline in tourist shopping in a region that had been one of luxury’s fastest-growing markets before the conflict. “Tourism has dropped to zero,” Rupert told reporters, adding that local consumers were continuing to shop, especially in Abu Dhabi. “Until the tourists return I don’t think anyone can hope for a big uptick. It will come back, it always does.”
Cartier store in China. (Photo: iStock/Robert Way)
