Shoppers line as much as enter a Cartier store, a division of Cie. Financing Richemont SA, situated on Canton Road within the Tsim Sha Tsui district of Hong Kong.
Billy HC Kwok | Bloomberg | Getty Images
Shares within the Swiss luxury group Richemont rose by 6.3% on Friday, in line with the corporate reported Record sales for the total 12 months, whilst spending fell in Asia Pacific.
The Cartier owner said group sales rose 3% at actual exchange rates to an all-time high of 20.6 billion euros ($22.38 billion) within the fiscal 12 months that led to March, despite a weaker outlook for luxury brands.
Shares pared gains barely after the market opened, rising 4.9% by 10 a.m. London time.
Fourth-quarter revenue fell 1% to 4.8 billion euros, reflecting a slowdown within the Asia-Pacific region.
“We experienced a decline in sales in Asia Pacific in the fourth quarter against difficult comparables, which was more than offset by higher growth in all other regions. As we had predicted, a sustained recovery in Chinese demand would take time,” Chief Executive Johann Rupert said in a press release.
In a separate statement, the corporate announced Van Cleef & Arpels CEO Nicolas Bos because the group’s recent CEO, effective June 1.
The luxury sector has been under pressure since late 2023 as difficult macroeconomic and geopolitical conditions have weighed on consumer spending, particularly in China.
Other luxury stocks LVMH, Dry And Christian Dior were trading lower on Friday morning.
Kering, considered one of the most important casualties of the economic slowdown in the posh segment, warned in April that it expected a pointy decline in first-half profits as demand for its Gucci brand waned amongst once-spending shoppers within the Asia-Pacific region.
