0852 GMT - Richemont's report is reigniting optimism across the luxury industry, but the environment is still challenging, AlphaValue analyst Jie Zhang writes in a note. The Swiss luxury group reported sales for its fiscal third quarter above analysts' expectations and triggered a luxury stock rally. However, the analyst maintains a cautious stance on the industry. "The uncertain political and economic environment continues to limit visibility for the sector's outlook," she says. This makes it difficult to extrapolate Richemont's performance into a broader trend. AlphaValue anticipates divergence in brand performance over the coming year, with major brands likely to further extend their lead. Richemont's Cartier and Van Cleef & Arpels are exposed to ultra-affluent clients, making them less impacted by broader macroeconomic challenges. Shares are up 1.6% at 164.40 Swiss francs. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
January 17, 2025 03:52 ET (08:52 GMT)
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