Estee Lauder and Tapestry shares climb on Richemont’s robust results

Investing.com — Shares of Estee Lauder (NYSE: NYSE:) and Tapestry (NYSE: NYSE:) experienced notable gains in Monday’s trading session, with Estee Lauder climbing 3.7% and Tapestry rising 2%. The upward movement for these luxury goods companies came in the wake of strong quarterly results from Swiss luxury group Richemont (SIX:), which reported a 10% increase in sales for the third quarter ending December 31, 2024.

Richemont’s positive performance was marked by record quarterly sales of €6.2 billion, signaling robust demand in several key markets. The Americas, Europe, the Middle East, and Africa all showed double-digit growth, while Japan also posted strong results. Despite a decline in the Asia Pacific region, primarily due to weaker demand in China, the company’s overall sales for the nine-month period grew by 4% at constant exchange rates and 3% at actual exchange rates.

The luxury conglomerate’s sales were driven by a 14% surge in its Jewellery Maisons business, which includes renowned brands such as Cartier and Van Cleef & Arpels. This acceleration was particularly fueled by successful jewelry and watch lines, especially during the festive season. The Specialist Watchmakers division saw an 8% decline, moderating from a steeper drop in the first half of the year. Sales in the ‘Other’ category, which encompasses Fashion & Accessories Maisons, increased by 11%, with notable contributions from brands like Alaïa and Peter Millar.

Retail channels led the charge with an 11% increase in sales, while online retail and wholesale also saw growth. The company’s strong cash position, reported at €7.9 billion, underscores its financial health and ongoing investments in long-term growth prospects.

The positive news from Richemont, a bellwether in the luxury goods industry, suggests a favorable environment for related companies such as Estee Lauder and Tapestry. Investors in these stocks may be responding to the broader implications of Richemont’s results, anticipating similar trends in consumer spending and demand within the luxury sector.

Today’s stock movements for Estee Lauder and Tapestry reflect broader market sentiment and the ripple effects of financial results within the luxury goods industry. As the market continues to digest Richemont’s robust earnings, the performance of related stocks will be closely watched by investors looking for indicators of the sector’s health and direction.

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