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Richemont enjoys sales surge as consumers lap up luxury goods

LUXURY goods group Richemont – owner of Cartier – said third quarter sales rose 2.6 per cent to €1.58bn (£1.39bn) driven by a three per cent rise in sales of specialist watches and a five per cent rise in jewellery sales.

Asian sales levels jumped 25 per cent and despite sales in Japan dropping 12 per cent analysts are convinced that Richemont will continue its strong performance.

Thomas Chauvet from Citi said: “Richemont could emerge from the recessionary cycle in a much stronger competitive position. We believe its strong brand portfolio, high emerging markets exposure and improving free cash flow make the company’s medium term outlook attractive.”

It has been a good year for luxury goods and Richemont shares have gained a fifth in the last three months.