Richemont said strong demand for its jewellery and a recovery in watch sales helped profits jump more than a third as the Swiss luxury group continued to defy a prolonged downturn in the sector.
The owner of Cartier and Van Cleef & Arpels said net profit for the six months to the end of September rose 39 per cent to €2.5 billion (US$2.76 billion; S$3.55 billion), beating expectations. Sales rose 17 per cent organically to €12.3 billion.
The results underscore how Richemont, along with a handful of luxury rivals including Burberry, has managed to outperform in a sector that has been hit by weaker Chinese demand and instability in the Middle East, with a pullback in spending by aspirational shoppers.
Jewellery has been particularly resilient, as wealthy consumers continue to spend on high-end pieces even as demand for luxury handbags and fashion has faltered.