Shares in the luxury goods sector soared as Richemont said sales jumped 10 per cent at the end of last year.
The figures at the Cartier owner boosted investor confidence about a recovery across the industry this year.
The Swiss firm, whose brands also include Montblanc, raked in £5.2billion in the three months to December 31, its highest quarterly sales.
Business was boosted as shoppers picked up pricey items of jewellery, such as Van Cleef & Arpels’ £7,800 butterfly pedant necklaces.
Sales were strong in America and Europe as the group hailed a ‘very solid’ end to 2024.
But appetite for luxury goods in China was still muted, as sales dropped 18 per cent in the region compared with the same period in 2023.
Fresh figures from Cartier owner Richemont boosted investor confidence about a recovery across the industry this year
Even so, the results marked a resounding comeback for Richemont, which previously posted a 1 per cent fall in sales for its second quarter.
Shares leapt 16 per cent yesterday in Zurich to hit a new high on hope the luxury industry could see a turnaround this year after a tumultuous 2024.
‘Investors took the update as a signal the luxury goods sector’s slump was over,’ said Russ Mould, investment director at AJ Bell, with a slew of results to follow.
LVMH, the world’s largest luxury conglomerate, was up 9 per cent while Gucci owner Kering rose 6 per cent and Hermes 5 per cent.
Britain’s Burberry rose 4 per cent ahead of a trading update next Friday, when new boss Joshua Schulman will shed light on whether his revival plan paid off at Christmas.
But rival Mulberry fell more than 2 per cent, failing to benefit from industry momentum.
The bargain valuations of both raise fears they could be next to be poached off the London bourse by private equity sharks.
Despite market bullishness, some queried whether a luxury recovery was in full swing. #Mamta Valechha, an analyst at Quilter Cheviot, said: ‘One of the key questions will likely be the read-across to the rest of the sector and to what extent Richemont’s strength is brand-specific or indicative of broader industry improvement. It could be both.’
Mood music has been gloomy since post-pandemic ‘revenge spending’ ran out of steam a couple of years ago.
High-end groups warned of lower profits and had to slash their prices last year.
China, the world’s second-largest economy, has been hit by a debt crisis in its property sector, and consumers in Britain and the US have been hit by inflation.
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