On Friday, shares in Cartier-owner Compagnie Financiere Richemont SA (SIX:CFR) leapt sharply after the company posted better-than-expected Q2 sales and first-half operating profit.

Sales during the quarter increased by 19 per cent at constant currencies to €5.02 billion (€1 = $1.0259), fueled by strong performance in Europe. Notably, quarterly revenue topped analysts’ forecasts for growth of 9 per cent.

Richemont’s critical Jewellery Maisons and Specialists Watchmakers divisions’ sales increased by 21 per cent and 16 per cent, respectively. However, China’s store closures caused by pandemic lockdowns weighed on revenue in the Asia Pacific region. H1 profit from continuing operations increased by 40 per cent year-on-year to €2.1B, 15 per cent above consensus estimates.

It is to be noted that Richemont was hit by a €2.7B charge emanating from its sale of weak e-commerce business Yoox Net-a-Porter to online peer Farfetch and Emirati investor Mohamed Alabbar. The company behind brands like Van Cleef & Arpels and Mont Blanc reported a loss of €766M for the six months that ended on September 30. This was down from a profit of over €1.2B during the same period last year.