Strong numbers from Richemont boosted the entire sector on Thursday. The Swiss standard value jumped by 15.9 percent to 161.25 francs, thus overcoming the previous year’s highs.
The figures acted as an initial spark for the luxury goods sector. Swatch rose by 7.7 percent, while LVMH and Kering were also up by over seven percent. The latter also benefited from the sale of three properties in Paris to the private equity firm Ardjan.
In the German MDax, Hugo Boss shares also rose by 2.6 percent. In addition to the good market environment for luxury stocks, positively received key data from the online fashion retailer Zalando may also have played a role here
In its most recent quarterly figures, Richemont increased sales by ten percent to 6.15 billion euros, thereby exceeding market expectations. Sales in Asia also fell less sharply than expected.
UBS analysts spoke of significantly better than expected figures for the third quarter of the financial year. This affects all segments. That is why the guidelines for the sector as a whole are so positive.
The experts from Deutsche Bank highlighted the strikingly strong sales development. The jewelry business has developed significantly better than expected, and the high-quality watch segment is also convincing. However, the ongoing weakness of business in China was not surprising, as consumer confidence there remains at a low level.
For Kepler Cheuvreux analyst Jon Cox, the surprisingly strong performance in the high-margin jewelry business should have a positive impact on overall profitability. No profit figures are yet known and will only be communicated when the annual results are published. (dpa)