Richemont's share price surges following strong sales in volatile global environment

THE share price of luxury goods group Compagnie Financiere Richemont surged 4.8% on the JSE on Friday after it reported strong global sales in the six months to September 30, with sales accelerating in the second quarter.

- EDWARD WEST

The group interim results, which includes brands such as Cartier, Van Cleef & Arpels, and Montblanc, showed sales up by 10% over the six months at €10.6 billion, while the acceleration in the second three months came to 14%.

The share price traded at R3670.27 on the JSE Friday afternoon, a good 50% higher than R2446.00 a year ago. "Richemont delivered a solid performance against a persistently complex macroeconomic and geopolitical backdrop," said Johann Rupert, chairman and founder of the group.

The growth in operating profit to €2.4bn was underpinned by a strong sales contribution and cost discipline, mitigating the negative impact of macroeconomic headwinds on gross margins.

Richemont's directors said the robust financial position was maintained due to a persistent focus on nurturing the group's Maisons' longterm growth prospects.

A Maison refers to a brand or "house" that embodies tradition, craftsmanship, and a distinct identity within a larger conglomerate.