Cartier appeal helps Richemont reach CHF100 billion market value

Swiss luxury conglomerate Richemont’s stock market value surpassed CHF100 billion ($110 billion) for the first time, bolstered by the appeal of its blockbuster jewelry label Cartier.

The company controlled by billionaire Johann Rupert last week reported better-than-expected results in the most recent quarter, a crucial period for high-end labels that coincides with the holiday shopping season.

The stock climbed 0.5% to CHF169.15  at 2:49 p.m. in Zurich, advancing for a sixth straight day. 

Consumers in the Americas and in Europe in particular splurged during the three months ended December, with Richemont’s jewelry brands faring strongly.

Richemont owns Cartier and Van Cleef & Arpels, which enjoy a solid appeal among wealthy shoppers. This segment, known as hard luxury, often does better in times of uncertainty as jewelry pieces tend to be more timeless than handbags and other fashion items.

Rupert’s family controls 51% of the voting rights despite owning only 10.2% of the capital in Richemont. The family’s wealth is estimated at about $15.8 billion on the Bloomberg Billionaires Index.

The performance of Richemont contrasts with some peers such as Kering SA, whose fashion label Gucci has been struggling for many years.

Kering shares hit a record in mid 2021, valuing it then at €99 billion ($103 billion). It’s now worth about €30 billion.

Although Richemont’s value has been on the rise, a few companies including Roche Holding AG and Novartis AG still rank higher on the Swiss market.