High-end jewelry is displayed at a Cartier store in Place Vendome in Paris, France, July 2, 2019. REUTERS/Regis Duvignau/File Photo

ZURICH, Jan 19 (Reuters) – Strong demand for its jewelry and watches in America and Europe in a post-pandemic rebound helped Cartier Richemont owner quarterly sales rise by nearly a third, said Wednesday the second luxury group in the world.

Richemont’s sales reached 5.658 billion euros ($6.41 billion) in the company’s third quarter ended December, a 32% increase when currency fluctuations were removed. The performance was 38% better than the 2019 Christmas quarter before the pandemic hit, Richemont said in a statement.

Shares, down slightly so far this year after jumping 71% last year, soared 5.7% in early trading after better-than-expected selling.

Demand for luxury goods has rebounded strongly from the worst lows of the coronavirus pandemic – Italy’s Prada and Britain’s Burberry (BRBY.L) also posted strong numbers this week – and Richemont is benefiting from its exposure to the category fast growing jewelry. Read more

Sales of high-end watches also recovered last year, with Swiss watch exports overall slightly above 2019 levels at the end of November.

Sales of jewelry brands Richemont Cartier, Buccellati and Van Cleef & Arpels increased by 38%, while sales of specialist watchmakers, including the IWC and Vacheron Constantin brands, increased by 25% compared to the same period of the previous year.

The Americas recorded the strongest growth – 55% – followed by Europe with 42%. China, which had already recovered from the worst of the pandemic the year before, saw only 7% growth, Richemont said.

Analysts hailed sales figures above expectations, highlighting the jewelry category, the rebound in Europe and the strong growth in retail sales in the group’s own stores.

To increase sales and margins, Richemont is moving away from wholesale to directly operated stores and online channels. Direct-to-consumer sales increased further, now accounting for 78% of group sales, and online retail sales also increased by 19%, Richemont said.

“Richemont has made significant improvements across the board and is currently in an ideal position to create value,” Vontobel’s Jean-Philippe Bertschy said, reiterating his “buy” recommendation on the stock.

Peer LVMH (LVMH.PA), owner of jewelry brands Bulgari and Tiffany, is due to release its annual results on January 27. The results of Swatch Group (UHR.S) are also expected around this date.

($1 = 0.8828 euros)

Reporting by Silke Koltrowitz; Editing by John Revill and Kenneth Maxwell

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