Swiss luxury group Richemont reported better-than-expected sales for the third quarter, prompting a read across in a battered sector that has struggled with weakening demand over the past few years. The company returned to quarterly growth, driven by its jewelry division--housing heavyweight brands like Cartier and Van Cleef & Arpels--as sales rose 10% to 6.15 billion euros. The stock is up nearly 16% at 161 Swiss francs, on track for its biggest one-day percentage gain ever, according to FactSet data.

Richemont's Performance Seen as Exceptionally Strong

0651 GMT - Richemont's results seem exceptionally strong and show a very good execution of the jewelry business, RBC Capital Markets analysts Piral Dadhania and Nikolaos Lafioniatis say in a note. The Swiss luxury group reported sales of 6.15 billion euros for its fiscal 3Q ended Dec. 31, up 10% on year. This was ahead of consensus estimates of 5.63 billion euros. The beat was across all regions and divisions, with an exceptional acceleration at the group's core jewelry business over the holiday period, they say. "We expect these results to read-across positively to the wider luxury sector with positive share price reactions across the board," they say. Shares in Richemont closed at 139.05 Swiss francs on Wednesday. (andrea.figueras@wsj.com)

Richemont Outperforms in Challenging Environment

0737 GMT - Swiss luxury group Richemont delivered an exceptional performance in a still challenging environment, Vontobel analyst Jean-Philippe Bertschy says in a note. The owner of Cartier and other high-end brands booked sales of 6.15 billion euros for its fiscal third quarter ended Dec. 31, 10% higher on year and surpassing consensus estimates of 5.63 billion euros. This represents a strong acceleration from the 1% decline in the prior quarter, Bertschy says. "Richemont has never been stronger," the analysts says. This is despite the situation in China, where the company noted that demand is still struggling and in the group's watches business, which reported an 8% decline in quarterly sales. Shares in Richemont closed at 139.05 Swiss francs on Wednesday. (andrea.figueras@wsj.com)

Richemont's Results Could Trigger Strong Share Price Reaction

0744 GMT - Richemont's strong revenue beat across all regions, channels and divisions should support its shares and the broader luxury sector, Citi analysts Thomas Chauvet and Mahesh Mohankumar write in a note. The Swiss luxury group booked sales of 6.15 billion euros for its fiscal third quarter ended Dec. 31, up 10% compared with the year-earlier period and ahead of consensus estimates. "We see Richemont as a fundamentally stronger business than during prior industry downturns," they say. Citi expects a strong share price reaction for both the company and the industry. Shares in Richemont closed at 139.05 Swiss francs on Wednesday. (andrea.figueras@wsj.com)

Luxury Stocks Jump After Richemont's Results Beat Expectations

0833 GMT - Shares in European luxury companies rose after Swiss luxury group Richemont reported a revenue beat across all regions, channels and divisions. The company's results come at a challenging time for the luxury industry, which is grappling with a slowdown in demand. Richemont booked sales of 6.15 billion euros for its fiscal third quarter ended Dec. 31, up 10% on year and ahead of consensus estimates of 5.63 billion euros. The stock is up more than 16% at 161.65 Swiss francs. Luxury bellwether LVMH trades 7.3% higher at 684.10 euros; Kering rises 7.4% and Hermes jumps 4.5%. Italy's Salvatore Ferragamo rises 4.7% and Brunello Cucinelli trades 3% higher. Burberry climbs more than 6%. (andrea.figueras@wsj.com)

Richemont's Regional Trends Seem Reassuring

1034 GMT - Richemont's regional trends provide positive read-across for the luxury sector, Barclays analysts Carole Madjo and Wendy Liu say in a note. The Swiss luxury company reported third-quarter sales of 6.15 billion euros, 10% higher on year. The group recorded double-digit growth in all markets, except in the Asia-Pacific region due to weak demand in China. Sales in the Americas rose 22% during the quarter, confirming the exceptionally resilient trend of Richemont-owned brands with U.S. consumers, the analysts say. "Improving trends in America and the absence of further deterioration in China is also reassuring for the rest of the reporting season," the analysts say. Shares are up around 17% at 162.60 Swiss francs. (andrea.figueras@wsj.com)

Richemont Post Solid Results Helped by Jewelry Brands

1047 GMT - Richemont recorded a solid performance for its fiscal third quarter, Morgan Stanley analysts write in a note. Data suggests that the outperformance of its brands Cartier and Van Cleef & Arpels has widened compared with its jewelry peers, they say. The Swiss luxury-goods company booked sales of 6.15 billion euros for the quarter ended Dec. 31. The result came in 9.4% above consensus expectations, one of the most significant beats in years, the analysts say. Richemont is one of the first luxury names to report sales for the quarter ending December, so it is difficult to assess to what extent the performance shows accelerating market-share gains or stronger demand for luxury goods, they add. Shares are up around 17% at 162.60 Swiss francs. (andrea.figueras@wsj.com)

Richemont's Results Might Be Risky to Extrapolate to Other Categories

1257 GMT - Richemont's quarterly results beat expectations across the board, but it might be risky to extrapolate the implications of this performance to other luxury categories, UBS analysts say in a note. The Swiss luxury group benefited in particular from strength at its jewelry division that houses brands like Cartier and Van Cleef & Arpels, the analysts say. However, trends at Richemont's specialist watchmakers division improved as well, according to UBS. "The whole sector should react positively today but we note that the implications to other categories, especially leather goods, may be risky to extrapolate," the analysts say. Richemont shares jump 16%, and the company's results lift shares in other luxury groups like LVMH, Kering, Moncler and Swatch, all of which climb 7% or more. (adria.calatayud@wsj.com)

Richemont Gets U.S. Boost From Booming Markets, Trump Election

1318 GMT - Richemont's strong performance in the Americas signals wealth creation in the U.S., partly due to booming financial markets and the Trump election, which has boosted high-end consumers, Bryan Garnier's Loid Morvan says in a research note. The Swiss luxury group exceeded sales expectations in December quarter across all regions, but the main beat was in the Americas, the analyst says. Richemont said sales in the Americas grew 22% in its fiscal third quarter, accelerating from a 12% increase the prior quarter. This points to the positive effect of wealth creation in the U.S.--Richemont's biggest market--on high-end consumers, according to Bryan Garnier. Richemont shares jump 16%. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

January 16, 2025 08:34 ET (13:34 GMT)

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