SWISS luxury conglomerate Richemont’s stock market value surpassed 100 billion Swiss francs (S$149.2 billion) for the first time, bolstered by the appeal of its blockbuster jewellery label Cartier.
The company controlled by billionaire Johann Rupert last week reported better-than-expected results in the most recent quarter, a crucial period for high-end labels that coincides with the holiday shopping season
The results gave a boost to the wider luxury sector on optimism that the industry is recovering after weak demand in recent years, notably in China. LVMH, the industry’s largest company with a market value of 358 billion euros, reports earnings on Tuesday.
Richemont owns Cartier and Van Cleef & Arpels, which enjoy a solid appeal among wealthy shoppers. This segment, known as hard luxury, often does better in times of uncertainty as jewellery pieces tend to be more timeless than handbags and other fashion items.
Consumers in the Americas and in Europe in particular splurged during the three months ended December, with Richemont’s jewellery brands faring strongly.
Rupert’s family controls 51 per cent of the voting rights despite owning only 10.2 per cent of the capital in Richemont. The family’s wealth is estimated at about US$15.8 billion on the Bloomberg Billionaires Index.
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The stock climbed 0.5 per cent to 169.05 francs at 3.50 pm in Zurich.
The performance of Richemont contrasts with some peers such as Kering, whose fashion label Gucci has been struggling for many years.
Kering shares hit a record in mid 2021, valuing it then at 99 billion euros (S$140 billion). It’s now worth about 30 billion euros.
Although Richemont’s value has been on the rise, a few companies including Roche Holding and Novartis still rank higher on the Swiss market. BLOOMBERG
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