Johann Rupert’s golden child booms

Richemont sales jumped on better-than-expected demand in the Americas and the region including China, the latest signal the luxury industry is turning the corner.

Sales at the jewelry division, its largest, climbed 14% at constant exchange rates in the six months ending in September, the Swiss luxury group said in a statement Friday.

Analysts had expected a gain of 10.3%. Overall, sales climbed 10%, above expectations. 

Richemont has withstood the luxury downturn better than most rivals, helped by the appeal of its high-end jewelry brands like Cartier and Van Cleef & Arpels.

In times of economic uncertainty, jewelry is often viewed as a better store of value than expensive apparel and leather goods.

This earnings season has lifted hopes that the broader slump — caused in part by Chinese shoppers reining in purchases — may be subsiding.

LVMH, the owner of brands including Louis Vuitton and Christian Dior, returned to growth last quarter, while Burberry saw comparable store sales turn positive for the first time in two years. Both cited improving demand from China. 

Richemont shares have climbed 17% this year, even as the Trump administration in August slapped a 39% tariff on Swiss imports to the US.  

Revenue from the region that includes China rose 5% at constant exchange rates, better than expectations for an increase of about 1.3%.