Swiss luxury goods conglomerate Richemont Shares, the parent company of Cartier, surprised markets with stronger-than-expected fourth-quarter sales, driven by resilient demand for high-end jewelry despite a broader slowdown in the luxury sector. The company reported revenues of €5.17 billion ($5.79 billion) for the three months ending in March, reflecting a 7% year-on-year increase at constant exchange rates. The figure surpassed the €4.98 billion consensus forecast by analysts polled by LSEG.
Richemont Shares performance was led by double-digit sales growth in its Jewellery Maisons division, home to brands such as Cartier, Van Cleef & Arpels, and Buccellati. The upbeat report sent the company’s shares climbing 7.1% by mid-morning in London, placing Richemont at the top of the Stoxx 600 index.
In contrast, the company’s specialist watchmakers segment, which includes Piaget and Roger Dubuis, saw a decline in sales, mainly due to weakened demand in the Asia-Pacific region. Full-year revenues also rose by 4% to €21.4 billion, narrowly beating expectations of €21.34 billion and reflecting stable performance across most regions.
Mixed Regional Sales Reflect Global Economic Challenges
Despite the strong results in jewelry, Richemont faced mixed outcomes across key global markets. Sales rose annually across all regions except Asia Pacific (excluding Japan), which remains the group’s largest market. The decline in that region was primarily due to a significant 23% drop in Chinese sales. In contrast, Japan led the way in regional growth with a 25% increase in annual sales, driven by strong spending from both domestic consumers and tourists, aided by a weak yen.
Chairman Johann Rupert acknowledged the group’s positive momentum in a statement, citing “remarkable growth” in jewelry and improved performance in the company’s other business segments, including Watchfinder & Co., a pre-owned watch retailer. However, Rupert warned that persistent global uncertainties would require the group to maintain agility and financial discipline moving forward.
The performance was buoyed further by retail gains, which indicate strong consumer confidence among high-net-worth individuals despite broader macroeconomic volatility. Analysts have noted that affluent buyers remain relatively insulated from inflationary pressures and interest rate fluctuations, continuing to spend on luxury items like fine jewelry.
Challenges Loom, But Pricing Power Offers Cushion
Looking ahead, Richemont faces several global headwinds that could impact future performance. According to analysts at BofA Global Research, key risks include volatile gold prices, ongoing U.S. trade tariffs, and foreign exchange fluctuations — particularly the strength of the Swiss Franc and the weakening U.S. dollar.
Despite these challenges, BofA analysts remain optimistic, citing Richemont’s strong pricing power and effective product mix as key factors that could help offset economic pressures. “We think price will cover half the headwinds,” they noted, highlighting pricing, higher capacity utilization, and strategic product offerings as potential safeguards.
Richemont Shares had previously posted record quarterly sales of €6.2 billion in January, even as China’s slowdown posed a concern. While global uncertainty continues to cast a shadow over the luxury industry, Richemont’s latest results signal that high-end jewelry remains a resilient segment — and investors are taking note.
