Swiss luxury conglomerate Richemontâs stock market value surpassed 100 billion Swiss francs ($110 billion) for the first time, bolstered by the appeal of its blockbuster jewellery label Cartier.
Shares of the company controlled by billionaire Johann Rupert have risen for six straight days since the company last week reported better-than-expected sales for the most recent quarter. The period covered the crucial holiday shopping season.
The results gave a boost to the wider luxury sector on optimism that the industry is recovering after weak demand in recent years, notably in China. LVMH, the industryâs largest company with a market value of â¬358 billion, reports earnings on Tuesday.
Richemont owns Cartier and Van Cleef & Arpels, which enjoy a solid appeal among wealthy shoppers. This segment, known as hard luxury, often does better in times of uncertainty as jewellery pieces tend to be more timeless than handbags and other fashion items.
Consumers in the Americas and in Europe in particular splurged during the three months ended December, with Richemontâs jewellery brands faring strongly.
LVMH Moët Hennessy Louis Vuitton SE, run by billionaire Bernard Arnault, owns jewellery labels such as Tiffany & Co. as well as Bulgari. Analysts at HSBC, though, estimate the French conglomerate derives about half of its profit from Louis Vuitton, whose appeal relies on its leather goods offering, a category known as soft luxury. LVMH doesnât break down profitability by brand.
Rupertâs family controls 51 percent of the Richemont voting rights despite owning only 10.2 percent of the capital in Richemont. The familyâs wealth is estimated at about $15.8 billion on the Bloomberg Billionaires Index.
The stock climbed 0.5 percent to 169.05 francs at 3:50 p.m. in Zurich.
The performance of Richemont contrasts with some peers such as Kering SA, whose fashion label Gucci has been struggling for many years.
Kering shares hit a record in mid 2021, valuing it then at â¬99 billion ($103 billion). Itâs now worth about â¬30 billion.
Although Richemontâs value has been on the rise, a few companies including Roche Holding AG and Novartis AG still rank higher on the Swiss market.
By Angelina Rascouet
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Richemontâs Sales Soar 10%
Higher sales in the US and Europe coupled with smaller declines in China offered a tentative sign that demand for luxury goods may be recovering.
