- Sales beat forecasts, helped by increasing wealth
- Jewellery sales jump ahead of expectations
- Shares indicated higher in premarket
- Asia and Americas sales growth accerates
ZURICH, July 15 (Reuters) - Cartier brand owner Richemont reported better-than-expected results for its first quarter on Wednesday, helped by booming demand for its rings, bracelets and necklaces in Asia and the Americas.
The company's shares were indicated nearly 8% higher in premarket activity on the Swiss exchange, following the results which showed Richemont gaining from wealth generated by rising stock markets and high earners in the U.S. tech sector.
Richemont, which also owns Swiss watch brands Piaget and IWC, said its sales rose by 20% when measured in constant currencies to €6.33 billion ($7.24 billion) in the three months to the end of June.
The figure beat analyst forecasts for €5.90 billion in a consensus compiled by Visible Alpha.
The growth was driven by the company's jewellery business, which also includes Van Cleef & Arpels, Buccellati and Vhernier, where sales rose by 24%, much better than the 13.5% rate expected by analysts.
"This set of results smashes consensus," said Bernstein analyst Luca Solca.
Richemont was benefiting from growth at extremes of the luxury sector, with expensive high-end jewellery for the very rich, and value-for-money entry-level products, Solca said.
Its watchmaking business also increased its sales by 8% during the period.
Regionally, Richemont accelerated its sales growth in the Americas and Asia regions during the April to June period.
Sales in the Americas region increased by 27%, up from the 18% growth rate in the previous three months, while sales in the Asia-Pacific region — which includes China — increased by 21% compared with a growth rate of 14% previously.
Sales in Europe also increased by 11%, while the Middle East shrugged off disruptions caused by the Iran conflict to see sales return to growth as local customers offset a drop in tourist spending, Richemont said.
($1 = 0.8744 euros)
Reporting by John Revill, editing by Kirsti Knolle and Tomasz Janowski
Source: Reuters