On Thursday afternoon luxury conglomerate Richemont revealed that it saw a 10% increase in sales during the three months ending at the New Year, a key period for luxury performance. The positive news is a potential sign that the luxury market might be picking up again following a rocky end to 2024, which put most luxury conglomerates on high alert.
Along with boosting Richemont’s shares by 18%, the reports spread cheer across the luxury sector as top conglomerate LVMH gained as much as nearly 9% and Hermès International increased by 6%.
According to Business of Fashion, the US and European markets drove the boost with purchases focussed on fine jewelry, counterbalancing weaker than normal watch sales. Though sales continued to decline in Asia, most heavily in China, the results reportedly beat analysts’ expectations.
Richemont is the parent to a variety of luxury names from Cartier in jewelry to Piaget in watches, and popular maisons ALAÏA, Chloe, Montblanc and more. Business of Fashion pointed out that Richemont’s stake in “hard luxury” (jewelry and watches) benefitted the company’s success through the otherwise difficult period for luxury. On the other hand, Kering and LVMH specialize in “soft luxury” (handbags and clothing), which tend to be more volatile than jewelry trends.
However, time will tell, as LVMH is set to post its results from the same period on January 28. Stay tuned to Hypebeast for the latest updates on the luxury market and other top fashion news.
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