Cartier, one of the world’s largest luxury retailer brands, has announced record profits in its after-market service business.
In its fiscal fourth quarter of 2017, revenue from after-sellers jumped 25 percent year-on-year to $1.35 billion, while after-selling service revenue rose 9 percent to $632 million.
The sales figures will not be released until the end of the year, but the results will come as a big relief to investors who had been concerned about the company’s growth in the after-life business.
Cartier said it expects the aftermarket service sales to grow 10 percent this year, and expects a 6 percent increase in the following three quarters.
“We have been working hard to improve our after-product sales performance, and this is our result,” Cartier chief executive Jean-Paul Chirac said in a statement.
“The sales of the after products are very good.
Our strategy has been to take advantage of the new generation of customers who are interested in our brand and our products.”
The after-service business has become a key business for the company, which has a significant market share in luxury goods.
Cartier is one of a handful of luxury brands that has benefited from the launch of the Apple Watch and its ability to attract buyers who are on the fence about buying luxury goods, especially if they are not tech-savvy.
The company, whose name translates roughly to “the light of life”, has been trying to diversify its aftermarket sales by launching products such as watches and sunglasses at high-end retail outlets, while also selling its own high-performance cars.
It was one of several high-profile brands to be hit by the financial crisis, as it suffered significant losses and has been hit hard by the global financial crisis.
Last year, Cartier reported that its after sales business had seen a 22 percent drop compared to the previous year.
Despite the drop in after sales revenue, the company had an increase in after profit in its fiscal third quarter of 2018.
For the fiscal fourth, Cartiers profit increased 17 percent to 7.9 billion euros ($9.2 billion), and revenue rose 7 percent to 2.924 billion euros.
While the company did not release details on the impact of the global economic downturn on after sales, Chiraccac said it was important to “make a strong statement” that Cartier has continued to be a strong and sustainable brand.
After-sale service revenue in the United States rose 16 percent in the fiscal third to $4.4 billion, and in Europe it rose 12 percent to 5.1 billion euros from the previous quarter.