Richemont, the Swiss luxury group behind Cartier and Van Cleef & Arpels, reported a stronger-than-expected start to the year as wealthy American customers continued spending on high-end jewelry. Sales increased by 20% at constant exchange rates during the three months through June, nearly twice the Bloomberg consensus forecast of 11% growth. The performance helped push Richemont shares up as much as 7.4% to a record in Zurich, marking the stock's largest intraday gain since early May and lifting other luxury companies. The results suggest Richemont may be managing the broader slowdown in luxury demand more effectively than LVMH Moet Hennessy Louis Vuitton (LVMHF), a global luxury goods group, Kering (PPRUY), the owner of Gucci, and Hermes International, another major luxury company.

Richemont's jewelry division, which represents about three-quarters of the group's business, posted quarterly growth of 24%, with the Americas leading the expansion. European sales were supported by strong demand from local customers and tourists from North America and the Middle East. The specialist watchmakers division grew by 8%, with Vacheron Constantin, Jaeger-LeCoultre and A. Lange & Sohne among the strongest performers. Richemont also recorded sales growth across every region, including a return to expansion in the Middle East and Africa, while Asia-Pacific sales increased by more than 20% due to strength in the jewelry business.

Vontobel, a Swiss financial services company, analyst Jean-Philippe Bertschy attributed the results to Richemont's consistent execution, disciplined price increases, capital allocation, desirable brands, pricing power and geographic diversification. He also highlighted that sales growth accelerated from an already high base despite a difficult economic backdrop and weaker expected results among competitors. Investors may view Richemont's exposure to high-end jewelry as supportive during uncertain economic periods, although the wider luxury sector continues to face weaker Chinese demand, higher gold prices and travel disruption linked to conflict in the Middle East. Richemont ended the quarter with a net cash position of 9.1 billion, including 400 million generated from selling its stake in Avolta, a duty-free operator.