Swiss luxury conglomerate Richemont\u2019s stock market value surpassed 100 billion Swiss francs (R2 trillion) for the first time, bolstered by the appeal of its blockbuster jewellery label Cartier.<\/p>\n\n\n\n
Shares of the company controlled by billionaire Johann Rupert have risen for six straight days since the company reported better-than-expected sales for the most recent quarter last week. The period covered the crucial holiday shopping season.<\/p>\n\n\n\n
The results gave a boost to the wider luxury sector on optimism that the industry is recovering after weak demand in recent years, notably in China. <\/p>\n\n\n\n
LVMH, the industry\u2019s largest company with a market value of \u20ac358 billion, reports earnings on Tuesday.<\/p>\n\n\n\n
Richemont owns Cartier and Van Cleef & Arpels, which enjoy a solid appeal among wealthy shoppers.<\/p>\n\n\n\n
This segment, known as hard luxury, often does better in times of uncertainty, as jewellery pieces tend to be more timeless than handbags and other fashion items.<\/p>\n\n\n\n
Consumers in the Americas and in Europe in particular splurged during the three months ended December, with Richemont\u2019s jewelry brands faring strongly.<\/p>\n\n\n\n
LVMH Mo\u00ebt Hennessy Louis Vuitton SE, run by billionaire Bernard Arnault, owns jewelry labels such as Tiffany & Co. as well as Bulgari. <\/p>\n\n\n\n
Analysts at HSBC, though, estimate the French conglomerate derives about half of its profit from Louis Vuitton, whose appeal relies on its leather goods offering, a category known as soft luxury. LVMH doesn\u2019t break down profitability by brand.<\/p>\n\n\n\n
Rupert\u2019s family controls 51% of the Richemont voting rights despite owning only 10.2% of the capital in Richemont. The family\u2019s wealth is estimated at about $15.8 billion on the Bloomberg Billionaires Index.<\/p>\n\n\n\n
With Richemont’s market cap surpassing R2 trillion, it is by far Rupert’s biggest company and most valuable child\u2014with the others being Remgro and Reinet.<\/p>\n\n\n\n
The stock climbed 0.5% to 169.05 francs at 3:50 p.m. in Zurich.<\/p>\n\n\n\n
The performance of Richemont contrasts with some peers such as Kering SA, whose fashion label Gucci has been struggling for many years.<\/p>\n\n\n\n
Kering shares hit a record in mid 2021, valuing it then at \u20ac99 billion ($103 billion). It\u2019s now worth about \u20ac30 billion.<\/p>\n\n\n\n
Although Richemont\u2019s value has been on the rise, a few companies, including Roche Holding AG and Novartis AG, still rank higher on the Swiss market.<\/p>\n\n\n\n
Shares of the company controlled by billionaire Johann Rupert have risen for six straight days.<\/p>\n","protected":false},"author":59,"featured_media":807163,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[9058,1850,4665],"class_list":["post-808443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-billionaire","tag-bloomberg","tag-richemont"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=808443"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808443\/revisions"}],"predecessor-version":[{"id":808447,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808443\/revisions\/808447"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/807163"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=808443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=808443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=808443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}