STORY: Richemont reported better-than-expected revenue for the first three months of the year on Friday.Strong demand in the U.S. and Asia offset a drop in Middle East sales for the Cartier-owner.The company’s sales outpaced rivals like Hermes and LVMH during the quarter.It was helped by continued strong demand for jewlery – which is a segment where it is more exposed – as sales rose by 14%.The Swiss-based Richemont makes earrings and necklaces under brands like Van Cleef & Arpels.Meanwhile its watch business – which includes the Jaeger-LeCoultre and IWC – grew only 1%.Jewelry has been a fast-growing segment of the luxury sector in recent years.Analysts argues it’s because high-income households keep buying gifts and get richer thanks to rising equity markets.One market watcher argued Cartier was doing “very well” with new collections in China, where jewelry was also outpacing watches.Strong sales growth in Asia, Japan and the Americas helped Richemont make up for a 3% sales decline in the Middle East.The region saw tourists stay away due to the Iran war.Sales grew by 13% in constant currencies to $6.27 billion during the first quarter, beating analyst forecasts.Company shares were down close to 2% after the update before scaling back marginally.
