Richemont's Jewellery Sales Shine Amid Luxury Wave

Richemont's Jewellery Sales Shine Amid Luxury Wave

Richemont, the esteemed Swiss luxury house behind Cartier, Van Cleef & Arpels, Buccellati, and more, just delivered a glowing Q1 performance—outpacing expectations and cementing its position as a jewellery powerhouse.

Q1 at a Glance

• Group sales rose 6% YoY in constant currency, hitting €5.4 billion—in line with forecasts .

• Jewellery division surged 11%, driven by elite demand for Cartier and Van Cleef & Arpels 

• Watch sales declined 7%, though the drop narrowed from Q4, signaling cautious recovery 

• Fashion & accessories eased 1%, suggesting a less compelling segment compared to jewellery

Regional Highlights

• Americas: +17% growth, driven by strong U.S. performance 

• Europe: Also posted an impressive +11% boost .

• Asia-Pacific: Flat overall—declines in China, Hong Kong, and Macau (-7%) offset by gains in other regional markets 

• Japan: Sales dipped nearly 15%, under pressure from a strong yen and normalizing tourist behavior.

 What's Driving the Surge?

1. Jewellery as “investment-grade” luxury
   High-net-worth consumers are opting for timeless jewellery—viewed as both aesthetic and asset—over pricier handbags and fashion accessories .

2. Strategic pricing moves
   Richemont moderated price hikes: Cartier jewellery increased ~3%, while Van Cleef & Arpels saw a 4–5% rise in April—balancing margins with consumer sensitivity.

3. Resilient regional demand
   Robust sales in the Americas and Europe underscore steady appetite among mature luxury markets.

4. Geopolitical headwinds on watches
   Despite easing, watch sales remained subdued. The division faces U.S. tariff uncertainties and Chinese consumer lukewarmness.

Market Takeaway

• Richemont’s stock is up ~9% YTD, defying broader luxury downturn trends impacting peers like LVMH.

• Analysts agree: Jewellery is the clear star, with continued appetite for fine pieces providing a buffer in a mixed luxury landscape .

• Still, watchmakers and fashion labels require tactical support, as consumer demand fluctuates.

 Strategic Outlook

Richemont is clearly leaning into its jewellery division as the cornerstone of growth—and perhaps even resilience. With demand holding strong, pricing executed judiciously, and regional diversification, they appear well-positioned.

However, to sustain momentum they must:

• Monitor global economic shifts—currency swings, material costs (especially gold), and trade tensions.

• Innovate across product lines—particularly in watches and fashion.

• Engage evolving consumer bases—especially in Asia, where signs of stabilization are emerging

Final Thoughts

Richemont’s Q1 results highlight a pivotal shift: jewellery has emerged as the lodestar of luxury, offering both allure and asset value. Against this backdrop, Cartier and Van Cleef & Arpels are not just surviving—they’re steering the brand forward. As watches and fashion recalibrate, the company’s jewellery-first strategy is its clearest pathway to sustained success.