Cartier owner Richemont cashes in as wealthy splash out on luxury

Richemont has become the latest luxury goods group to benefit from growing demand as wealthy customers continue to splash out.

The Swiss company, whose brands also include Cartier, Montblanc, Alfred Dunhill and Buccellati, posted record annual sales of more than £17 billion, while profits hit an all-time high of around £4.5 billion.

Business was boosted as shoppers picked up expensive watches and jewelery such as Van Cleef & Arpels’ £7,800 butterfly necklaces.

Richemont experienced a particularly strong uptick in China as Covid lockdown restrictions were lifted.

Shares in the company hit an all-time high in Zurich as it followed in the footsteps of rivals such as LVMH and Hermes, which also saw seemingly insatiable demand for luxury goods.

Jean-Philippe Bertschy, an analyst at Swiss private bank Vontobel, said Richemont’s update was further evidence that the strongest labels continue to thrive even as prices rise.

“The polarization between strong brands with iconic pieces and weaker brands continued unabated and accelerated in recent months due to high inflation,” he said. “Richemont is very well positioned with Cartier, Van Cleef & Arpels or Vacheron Constantin.”

Richemont chairman Johann Rupert was optimistic that the company could benefit from a recovery in Chinese travel in the coming months.

Rupert, 72, who founded the company in 1988, also refuted speculation that the company could be sold after reports that French rival LVMH was eyeing a takeover. He said the company was in “ongoing dialogue” with LVMH and “we respect each other’s independence.”

Birkin bag maker Hermes said sales in the first three months of the year were 23 percent higher than in the same period of 2022. And LVMH — whose brands include Christian Dior and Dom Perignon — also reported a 17 percent increase in sales.