JAMIE CARR: Ultra-rich keep Richemont rolling
Hard times unlikely to affect those at top of money tree
Sparkling results saw Richemont’s share price take off after the luxury goods group reported 24% sales growth in its Jewellery Maisons and 22% in its Specialist Watchmakers. It’s hard not to admire the robust attitude of its customer base, who appear to have responded to the cost of living crisis with a resounding “Stuff it” and a trip to the local Cartier boutique to ship in a few watches and a morale-boosting bauble or two.
Johann Rupert sounds his customary note of caution, flagging “volatile times ahead” with the challenges of inflation and severe cost of living pressures, though these are unlikely to put too much of a dent in Richemont’s core wealthy customer base. The impact will be greater on younger, more marginal buyers who have provided much of the sector’s growth of late, but who are likely to be cutting back on fripperies when they are struggling to pay the heating bill. ..
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