Shares of Swiss luxury group Richemont climbed as much as 6.3% on Friday after the company reported record full-year sales, even as Asia-Pacific spending waned. The Cartier owner announced that group sales rose 3% at actual exchange rates, reaching an all-time high of 20.6 billion euros, or $22.38 billion, in the financial year ending in March. This performance came despite a weakening outlook for luxury brands.

By 10:00 a.m. London time, shares had slightly pared their gains, trading up 4.9%.

Richemont's fiscal fourth-quarter sales fell 1% to 4.8 billion euros, or $5.21 billion, at actual rates. This decline was primarily driven by a slowdown in the Asia-Pacific region.

“We experienced a softening of sales in the fourth quarter in Asia Pacific against challenging comparatives, which was more than offset by higher growth in all the other regions. As we predicted, a sustainable rebound in Chinese demand would take some time,” chairman Johann Rupert said in a statement.

In addition to its financial results, Richemont announced a significant leadership change. Nicolas Bos, the CEO of Van Cleef & Arpels, will become the new group CEO, effective June 1. This move is part of Richemont's strategy to strengthen its leadership as it navigates the complex global luxury market.

The luxury sector has been under pressure since late 2023, with tough macroeconomic and geopolitical conditions impacting consumer spending, particularly in China. Despite this, Richemont managed to achieve record sales, highlighting its strong market position and effective business strategies.

Other luxury stocks such as LVMH, Kering, and Christian Dior were seen trading lower on Friday morning. Kering, in particular, has been one of the biggest casualties of the luxury slowdown. The company warned in April that it expects a sharp downturn in first-half profits due to waning demand for its Gucci brand among once big-spending Asia-Pacific shoppers.

Richemont's robust performance contrasts with the broader challenges faced by the luxury sector. The company's ability to offset the decline in Asia-Pacific sales with growth in other regions underscores its diversified market presence and resilience.

The announcement of Nicolas Bos as the new group CEO is expected to bring fresh perspectives and strategic direction to Richemont. Bos's successful tenure at Van Cleef & Arpels, where he drove significant growth and brand recognition, makes him a strong choice to lead Richemont in its next phase of development.

Richemont's impressive full-year sales, despite the challenging market conditions, reflect its strong brand portfolio and effective management. Brands like Cartier continue to perform well, maintaining their appeal among affluent consumers globally.

The luxury market's future remains uncertain, with ongoing geopolitical tensions and economic challenges likely to influence consumer behavior. However, Richemont's proactive measures, including leadership changes and strategic market adjustments, position it well to navigate these uncertainties.

The company's focus on high-quality products, innovative marketing, and strategic global expansion will be crucial in sustaining its growth momentum. Richemont's ability to adapt to changing market dynamics and consumer preferences will determine its long-term success in the competitive luxury sector.

Richemont's record sales performance is a testament to its strong market position and effective strategies. The company's leadership changes and focus on market diversification highlight its commitment to maintaining its leading position in the global luxury market. As the industry continues to face challenges, Richemont's resilience and strategic foresight will be key to its ongoing success.