The richest person in South Africa, Johann Rupert, has seen an incredible increase in his net worth, rising by $2.2 billion in less than a month. According to data from Bloomberg’s Billionaire Index, as of the market closing on Thursday, February 15, 2024, Rupert’s net worth increased to $13.4 billion from $11.2 billion on January 18, 2024.
The increase in Rupert’s net worth can be attributed to the growth of his Richemont shares, which he owns in the premium brand. Rupert’s net worth is getting close to $14 billion, even if his average valuation is still at $12 billion. According to market data, Richemont shares increased 26.34% month over month, from $108 to $136.5.
Increased demand for Richemont’s high-end jewelry brands, such as Cartier and Van Cleef, is reflected in the company’s share price boom, which is expected to drive strong Christmas sales. For the quarter that ended on December 31, 2023, Richemont had an astounding 8% year-over-year growth in sales at constant exchange rates while encountering difficulties in the luxury market.
With a favorable performance that exceeded expert expectations and reached €5.6 billion ($6.1 billion), shares surged 10% in early trading. Strong demand in Greater China and Japan, where sales increased by 25% and 18% during the quarter, respectively, was the main driver of the growth.
Interestingly, Richemont saw a spike in sales in the difficult US market, bucking the general downturn that rival companies in the area were reporting. A downturn in Europe was somewhat countered by this recovery in the US market. Richemont’s strategic concentration on the more expensive hard luxury market proved beneficial, providing protection against the notable downturn in middle-class and aspirational consumer spending that has affected luxury sales at other businesses.
This discrepancy draws attention to the self-help stories and tenacity of the luxury market’s category leaders. The profitable sales figures follow Richemont’s decision to back out of a convoluted contract to sell Yoox-Net-a-Porter (YNAP) to Farfetch, which was losing money.
Even if Richemont is still looking for a new controlling stakeholder for the company, YNAP is still regarded as an asset held for sale. During a call with investors, Chief Financial Officer Burkhart Grund noted that the company has already received unsolicited interest from possible purchasers, indicating that management is still optimistic about finding a buyer within the next 12 months.
