European luxury stocks retreated Thursday after Richemont reported quarterly sales that beat expectations. The Swiss conglomerate posted 6.4 billion euros in revenue for the September-to-December period, an 11% rise on a constant-currency basis, fueled by strong global jewellery demand and improving sales in Greater China.

The region, Richemont's second-largest market, saw sales climb 2%, led by a recovery in Hong Kong. This marks a second consecutive quarter of improvement. Investors, however, appeared to sell the news, with shares of LVMH, Kering, and Brunello Cucinelli also dipping slightly on the day.

Richemont's watchmaking division, which includes IWC and Jaeger-LeCoultre, also posted a solid 7% sales increase. The results provide an early positive signal for the luxury sector heading into 2026, a key year for the industry as it navigates a shifting global economic landscape.