Cartier owner Richemont posts sales beat as jewelry shines amid luxury malaise

Cartier owner Richemont on Friday posted better-than-expected fiscal fourth-quarter sales, as the wealthiest spenders continued to shrug off global macroeconomic uncertainty.

Revenues at the Swiss luxury group rose 7% year-on-year at constant exchange rates to 5.17 billion euros ($5.79 billion) in the three months to the end of March, above the 4.98 billion euros forecast by analysts in an LSEG poll.

The fourth-quarter sales bump was led by double-digit growth at the group's Jewellery Maisons division, which includes Cartier, Van Cleef & Arpels and Buccellati.

Sales nevertheless declined within the company's specialist watchmakers segment, which features brands Piaget and Roger Dubuis, led by weakness in the Asia-Pacific region.

Full-year sales rose 4% to 21.4 billion euros, up on the previous year and just ahead of analyst expectations of 21.34 billion euros.

Sales rose annually across all regions, except Asia Pacific (ex. Japan) — the company's largest market — where declines were led by a 23% drop in China. Japan led annual sales growth, up 25% at actual exchange rates, buoyed by "strong domestic and tourist spend" and a weak Japanese Yen.

"The Group's performance was robust overall, driven by remarkable growth at our Jewellery Maisons and retail, and improved momentum at our 'Other' activities," Richemont Chairman Johann Rupert said in a statement. The company's so-called "other" segment includes its pre-owned watch retailer Watchfinder & Co.

The chairman nevertheless added that ongoing global uncertainties would continue to require "strong agility and discipline."

BofA Global Research said in a note last week that Richemont faces three key global headwinds: gold prices, U.S. tariffs and foreign exchange fluctuations, by way of the strength of the Swiss Franc and the weakness of the U.S. dollar.

However, the bank's analysts added that the company's pricing power could provide a tailwind.

"We think price will cover half the headwinds," they wrote. "Pricing, product mix and higher capacity utilization are the most obvious offsets."

Richemont had previously reported its "highest ever" quarterly sales figure in January at 6.2 billion euros, even as China demand weighed.

The earnings had, at the time, been taken as a signal of a wider turnaround in the beleaguered luxury sector. However, the specter of U.S. trade tariffs and subsequent macroeconomic uncertainty have threatened to once again hit consumer confidence and discretionary spending globally.

This is a developing story, please check back for updates.