What's going on?

Cartier�s owner Richemont clocked up some bumper results last quarter, reporting record-breaking figures on Friday.

What does this mean?

The luxury sector has been on a roll lately, with LVMH and Herm�s each strutting their stuff � and now Richemont, owner of ultra-luxe brands like Cartier and Vacheron Constantin, has gone and joined the party too. The firm thinks China’s economic rebound has been one key factor in that success: as restrictions relaxed in the world’s second-biggest economy, Richemont’s Asian jewelry and watch sales soared, offsetting a slight US slowdown last quarter. The result: a year of record-shattering revenue and profit that trounced expectations. As a cherry on top, the company announced a special dividend and a share buyback program too � sending shares up 6%, to a new all-time high.

Why should I care?

Zooming in: China�s chic customers.
Luxury companies might keep on reaping the rewards of China’s reopening. See, while Chinese tourism is slowly picking up, big groups haven’t returned in full force � partly due to pricey flights to Europe. And that matters: after all, China�s clothes horses can often bag better deals on their finery in Europe than at home, so Chinese tourism�s a major driver of global luxury sales. And with analysts expecting the country�s tourists to start returning en masse from the second half of this year, luxury might soon be blessed with yet another boost.

The bigger picture: Rich-mont�s richer suitors.
The luxury boom has left firms flush with cash, sparking whispers of potential dealmaking in the space. Richemont’s brands have long been seen as takeover targets � with recent rumors hinting at renewed interest from titan LVMH � but the company�s insisting it’s not for sale. One thing is certain, though: after a performance like this, any suitors will need some seriously deep pockets to impress Richemont.