Cartier-owner Richemont beats quarterly sales forecast as sales jump 14%
ZURICH (Reuters) -Cartier-owner Richemont reported better-than-expected quarterly sales on Friday, as the Geneva-based luxury group awaited the outcome of tariff negotiations between Switzerland and the United States.
The U.S. and Switzerland have edged closer to a trade deal to reduce President Donald Trump's crippling 39% tariffs on Swiss imports and shrink Switzerland's trade surplus with the U.S. after talks in Washington on Thursday, officials from the two countries said.
The United States is Richemont's biggest single market, generating around 22% of the company's sales. The company's other brands include watchmakers IWC, Piaget and Jaeger-LeCoultre, as well as jeweller Van Cleef & Arpels.
Quarterly sales were up 14% at constant exchange rates in the July-September period, the company said. The figure of 5.21 billion euros ($6.08 billion) beat forecasts for 5.0 billion euros in a Visible Alpha poll of analysts.
Sales in the Asia Pacific region, Richemont's most important market dominated by China, saw sales rise by 10% at constant exchange rates.
But even stronger growth was seen in the Americas, where sales surged 20%, when currency effects were removed.
The trading update from Richemont, which weathered the luxury sector's recent slump better than most peers thanks to its strength in jewellery, pointed to a broader recovery in the market for high end products.
($1 = 0.8575 euros)
(Reporting by John Revill, aditional reporting by Marleen Kasebier, editing by Tassilo Hummel)