Johann Rupert is smiling from ear to ear

Richemont’s full-year sales rose more than expected as shoppers splurged on its pricey Cartier bracelets and rings, helping the Swiss group weather a luxury market slowdown better than most rivals.

Sales climbed 11% on a constant currency basis in the fiscal year ended in March, the company said Friday, compared with the 9.78% estimate of analysts surveyed by Bloomberg. 

Richemont has proved resilient during the luxury downturn in part because of its focus on fine jewelry, which is often viewed as a better store of value than expensive apparel and leather goods.

Hopes earlier this year that the broader industry was poised to emerge from its slump evaporated with the war in the Middle East, which reduced demand in the region and darkened the global economic outlook. 

UBS analyst Zuzanna Pusz estimates Richemont gets about 9% of its revenue from the Middle East, where the onset of the conflict affected sales in high-end shopping hubs like Dubai.

Luxury groups LVMH Moet Hennessy Louis Vuitton, Gucci-owner Kering and Hermes International all reported weaker-than-expected first-quarter sales.

Richemont shares have fallen 9% this year in Zurich, compared with a 27% decline in LVMH, whose brands include Louis Vuitton and Christian Dior.