Cartier and Van Cleef & Arpels help Richemont buck the luxury downturn

Richemont reported a sharp rise in profits as strong jewellery demand and recovering watch sales helped it outperform a broader luxury-sector downturn. The results show how high-end jewellery has remained resilient while weaker Chinese demand and reduced spending on fashion and handbags have weighed on many luxury brands.

Net profit for the six months to the end of September rose 39 per cent to €2.5 billion, while organic sales increased 17 per cent to €12.3 billion. Jewellery sales rose 19 per cent to €9.1 billion, and specialist watch sales grew 12 per cent in the second quarter, above analysts’ expectations; shares fell 7 per cent in early trading. Japan led regional growth, while mainland China remained subdued and sales in the Middle East and Africa fell 7 per cent.