UPDATE 1-Cartier owner Richemont beats Q4 sales forecast despite Middle East hit
The company said constant-currency sales there fell by 3% in the quarter, below the 20% growth rate seen a quarter earlier. "Looking ahead, uncertainty is likely to persist, not least in relation to developments in the Middle East," Richemont Chairman Johann Rupert said.
Cartier-owner Richemont reported better than expected fourth-quarter revenue on Friday, as a fall in Middle East sales was offset by strong demand in other regions like the United States and Asia. The Swiss-based owner of a host of luxury brands, including watchmakers IWC, Jaeger-LeCoultre and Piaget, saw sales rise 13% in constant currencies to €5.40 billion ($6.27 billion) in the three months to the end of March.
The figure beat analyst forecasts for €5.30 billion in a consensus of analysts gathered by Visible Alpha. Without excluding currency swings, quarterly sales were up 4%%, Richemont said, a smaller increase mainly due to the euro's strength versus other currencies. Richemont generates a higher portion of its sales, around 8%, in the Middle East than most industry peers. The company said constant-currency sales there fell by 3% in the quarter, below the 20% growth rate seen a quarter earlier.
"Looking ahead, uncertainty is likely to persist, not least in relation to developments in the Middle East," Richemont Chairman Johann Rupert said. Luxury investors are increasingly worried that 2026 won't be the year of the sector's recovery after close to three years of weak sales led by lacklustre demand in China, now exacerbated by the impact of the Iran war. Richemont's quarterly Asian sales, however, were up 14%, beating market expectations, with the group saying demand was particularly strong in Hong Kong and South Korea. Japan also saw strong growth of 28% when adjusted for currency swings. The conflict in the Middle East - until recently the sector's most profitable and fastest-growing region - is clouding the outlook for companies from Hermes to LVMH which have had a sluggish start to the year, sending their shares down 24% and 27% respectively since the start of the year.
Shares in Richemont, which have been cushioned by robust demand for its high-end jewellery despite the wider downturn, have shed 9% so far this year. ($1 = 0.8610 euros)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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