Cartier owner Richemont beats Q4 sales forecast despite Middle East hit (updated)
22/05/2026 06:54
Americas, Asia, and Japan sales growth offset Middle East deccline Full-year net profit rises but misses analyst forecast, operating margin narrows Shares fall 1.8% recasts throughout, with details of jewellery sales and watch sales in paragraphs 3 and 4; analyst comment in paragraph 8, background By John Revill ZURICH, May 22 (Reuters) - Cartier-owner Richemont CFR.S reported better-than-expected revenue for the first three months of the year on Friday, as a drop in Middle East sales was more than offset by strong demand from the United States and Asia. The company's sales outpaced rivals Hermes HRMS.PA, LVMH LVMH.PA and Kering PRTP.PA during the quarter, helped by continued strong demand for jewellery, a segment to which it is more exposed. Swiss-based Richemont, which makes brooches, earrings and necklaces under the Cartier, Buccellati, Van Cleef & Arpels and Vhernier brands, saw its jewellery sales rise by 14% during the quarter. In contrast, its watch business - which includes the IWC, Jaeger-LeCoultre and Piaget brands - grew only 1%. Jewellery has been a fast-growing segment of the luxury sector in recent years as high-income households have continued buying gifts and are getting richer thanks to rising equity markets, higher asset values and rising executive incomes, analysts say. How much some people earned in some sectors like tech in the U.S. was "surreal," said Richemont Chairman Johann Rupert. "High-end luxury consumers are holding up far better than other luxury buyers and the fashion and accessories end of the luxury market," said Kepler Cheuvreux analyst Jon Cox. Rupert said the U.S. economy continued to do well, while China was stable and high growth in Hong Kong was returning. "The U.S. economy, the metrics are still looking better than many other economies, and the feel-good factors are still there," he told reporters. Cartier was doing "very well" with new collections in China, where jewellery was also outpacing watches, Rupert said. Overall during the quarter, strong sales growth in Asia, Japan and the Americas helped Richemont compensate for a 3% sales decline in the Middle East region as tourists stayed away due to the Iran war. Sales grew by 13% in constant currencies to €5.40 billion ($6.27 billion) during the first quarter, beating analyst forecasts for €5.30 billion in a consensus of analysts gathered by Visible Alpha. The company, which does not report quarterly profit, said its full-year net profit improved to €3.48 billion from €2.75 billion a year earlier. But the figure was below the €3.69 billion forecast, while the operating profit margin fell 90 basis points to 20.0%, reflecting high raw material prices, including gold. Shares in the company were 1.8% lower at 1100 GMT. ($1 = 0.8610 euros) Richemont beats luxury rivals as sector grapples with slowdown https://www.reuters.com/graphics/RICHEMONT-RESULTS/SHARES/akveywkwlvr/chart.png Richemont's continued sales growth dwarfs rivals https://www.reuters.com/graphics/RICHEMONT-RESULTS/COMPARISON/znpnmawdlvl/chart.png (Reporting by John Revill, editing by Tassilo Hummel and Elaine Hardcastle) ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net/))