By Andrea Figueras

Swiss luxury group Richemont is scheduled to report results for its fiscal third quarter on Thursday. Here is what you need to know.

SALES FORECAST: The owner of Cartier and Van Cleef & Arpels should report sales of 5.63 billion euros ($5.80 billion) for the quarter ended Dec. 31, according to a poll of estimates by 13 analysts compiled by Visible Alpha. In the prior-year period, the company booked sales of 5.59 billion euros.

Shares have jumped more than 26% in the past 12 months and are up around 0.6% since the start of 2025.

WHAT TO WATCH:

-- JEWELRY RESILIENCE: The strength of Richemont lies in its exposure to jewelry, which is a popular category, as it is seen as a long-term investment purchase, Barclays analysts Carole Madjo and Wendy Liu said in a note. Considering that trends are expected to remain broadly similar compared with the previous quarter, the company's core jewelry business should report 5% organic growth in the third quarter. Trends in the U.S. could potentially enjoy a small acceleration now that the uncertainty around the elections is over, the analysts said. "However, the Chinese cohort should remain down double-digits as consumer sentiment remains weak," they added. In the current slowdown in global luxury demand, the company's recent earnings performance reaffirms the relative resilience of Richemont's jewelry segment, driven by the strong brand equity of Cartier and Van Cleef & Arpels, AlphaValue analyst Jie Zhang said in a note.

-- CHALLENGING TIMES FOR WATCHES: The company's specialist watchmakers division is expected to remain particularly weak, Barclays said. This is due to its high exposure to China, a market where luxury companies are struggling with a slowdown in demand as high-end buyers have reduced their spending on pricey goods in light of the country's economic woes. "Indicators such as the Swiss Watch Export data remain volatile in China," Barclays analysts added.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

January 15, 2025 08:29 ET (13:29 GMT)

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