This company's shares rose by 7%, demand for these luxury brands remained strong

News Topical, Digital Desk : Cartier's parent company Richemont recently posted better-than-expected sales figures, thanks to wealthy individuals continuing to spend on luxury items despite uncertainty in macroeconomic conditions.

The Swiss luxury group's revenue rose 7% year-on-year to 5.17 billion euros ($5.79 billion) in the year to the end of March. Meanwhile, shares were up 7.1% as of 9:54 a.m. London time and were trading near the top of the Stoxx 600.

These brands contributed
The group's jewelry maisons division contributed the most to the increase in sales during the fourth quarter, where double-digit growth has been seen. These include Cartier, Van Cleef & Arpels and Buccellati. The company's total sales grew 4% to 21.4 billion euros, which is higher than last year. Decline in major segments The company's watch sales have declined. This is a special segment of the company, which includes brands such as Piaget and Roger Dubuis. The Asia-Pacific region is responsible for the decline in this segment. Sales have increased in all regions except Asia-Pacific, the company's largest market. For example, sales in China declined by 23%. Challenges remain Richemont Chairman Johann Rupert said in a statement, "The group's performance remained strong overall, driven by strong growth in our jewellery maisons and retail, as well as our other activities." He further said that the ongoing uncertainties around the world will continue to require strong agility and discipline. BofA Global Research said in a note last week that Richemont is facing three major challenges, including gold prices, US tariffs and foreign currency fluctuations. However, analysts at the bank said that the company's pricing power could prove to be beneficial.
 

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