On Thursday afternoon, luxury conglomerate Richemont announced a 10% increase in sales in the three months to the new year, a critical period for luxury goods performance. The positive news is a potential sign that the luxury goods market may pick up again after a rocky end to 2024, which had most luxury conglomerates on high alert.
The news sparked jubilation across the luxury goods sector, with Richemont’s share price rising 18%, top conglomerate LVMH up nearly 9% and Hermès International up 6%.
Business of Fashion said markets in the U.S. and Europe were boosted by purchases focused on fine jewelry, offsetting lower-than-usual watch sales. Results reportedly exceeded analysts’ expectations, although sales continued to decline in Asia, particularly China.
Richemont is the creator of a variety of luxury brands, from Cartier jewelry to Piaget watches, and popular maisons Alaïa, Chloé, and Montblanc. Business of Fashion magazine said Richemont’s investments in “hard luxury” (jewelry and watches) helped the company succeed during a difficult period for luxury goods. Meanwhile, Kering and LVMH specialize in “soft luxury” (handbags and clothing), which tend to be more volatile than jewelry trends.
However, LVMH is scheduled to release its financial results for the same period on January 28th, so only time will tell. Stay tuned to Hypebeast for the latest updates on the luxury market and other top fashion news.
