Swiss luxury conglomerate Richemont reported its fourth-quarter results on the 22nd. The report indicates that robust demand in the Americas and Asia-Pacific regions drove the group's quarterly revenue above market expectations, effectively offsetting the negative impact of declining sales in the Middle East.

Data shows that for the three months ending March this year, Richemont, which owns brands such as Cartier and IWC, achieved a 13% year-on-year increase in sales at constant exchange rates, reaching 5.4 billion euros (approximately 6.27 billion US dollars). This figure surpassed the 5.3 billion euros previously estimated by market analysts. When accounting for currency fluctuations, the actual sales growth was 4%, due to a relatively stronger euro.

Regionally, the Asia-Pacific market emerged as a key growth driver. The group's sales in Asia grew by 14% year-on-year during the quarter, exceeding expectations, with particularly strong demand from Hong Kong, China, and South Korea. Furthermore, excluding currency effects, sales in the Japanese market saw a significant 28% increase. In contrast, Richemont's business in the Middle East, which accounts for approximately 8% of total sales—a share higher than the industry average—experienced a 3% decline in sales at constant exchange rates. This marks a notable deceleration from the 20% growth rate recorded in the previous fiscal quarter, influenced by the current geopolitical situation.

Richemont Chairman Johann Rupert noted that market uncertainty is likely to persist, given the evolving situation in the Middle East.

Analysis points out that the global luxury industry is facing multiple challenges. Following nearly three years of sluggish sales, investors are generally cautious about a comprehensive recovery this year, impacted by slowing demand in some key markets and the recent intensification of conflicts in the Middle East. The regional conflicts have cast a shadow over the industry's overall outlook, with peers such as Hermes and LVMH experiencing a slow start to the year, their year-to-date stock prices declining by 24% and 27%, respectively. Although Richemont has found some support from the stable performance of its high-end jewelry business, its year-to-date stock price has still fallen by 9%.