Economic turmoil wipes shine off Cartier owner

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Cartier owner Richemont has become the latest luxury goods group to warn that economic worries and global tensions are hitting business.

The Swiss company said sales in the third quarter between July and September were just 5 per cent higher than a year earlier.

That was a marked slowdown from the 19 per cent increase seen in the previous quarter.

As such, sales over the six months rose by a smaller than expected 6 per cent to £9billion while profits were also lower than hoped at £1.3billion. 

Richemont shares fell 5.2 per cent in Zurich. 

Richemont chairman Johann Rupert said inflation, slowing economic growth and geopolitical insecurities were dampening sentiment. 

The post-Covid feel-good factor in China had also dissipated, as a property crisis and record youth unemployment have weighed on sentiment.

‘They’re not going out to bust their credit cards,’ Rupert said referring to Chinese customers, who make up 30 per cent of Richemont’s sales. He said he was ‘very positive about the medium term outlook’.