Richemont Shares Surge 6% on Record Sales and New CEO

Swiss luxury group Richemont (SIX: CFR), owner of Cartier, saw its shares rise up to 6.3% on Friday following a report of record full-year sales. The company's sales increased by 3% at actual exchange rates, reaching an all-time high of 20.6 billion euros ($22.38 billion) for the financial year ending in March. This growth came despite a decline in Asia-Pacific spending and a generally weak outlook for luxury brands.

Fiscal fourth-quarter sales, however, dropped by 1% to 4.8 billion euros at actual rates. This decline was mainly due to a slowdown in the Asia-Pacific region. Chairman Johann Rupert acknowledged the challenging comparatives but highlighted strong growth in other regions. He noted that a steady rebound in Chinese demand would take time.

In addition to the financial update, Richemont announced a leadership change. Nicolas Bos, the CEO of Van Cleef & Arpels, will become the new group CEO starting June 1.