Richemont, the owner of Cartier and Van Cleef & Arpels, announced a 6% rise in quarterly sales, reaching $5.4 billion. This growth was largely propelled by its jewelry division, which saw an 11% increase in sales. This performance comes amid a general slowdown in the luxury market, and analysts, including Jean-Philippe Bertschy of Vontobel, praised the "dominance and robust growth" of Richemont's jewelry sector.
The robust jewelry sales, which contributed over 70% of Richemont's revenue in the first fiscal quarter of 2025-26, outpaced consensus estimates and marked the third consecutive quarter of double-digit growth for the segment. Luca Solca of Bernstein noted that the 11% uptick in jewelry sales exceeded already "punchy" consensus estimates of 9%. The company attributed this success to resilient demand from local clients and tourists, as well as successful high jewelry events.
While the jewelry division thrived, Richemont's watches division, including brands like Vacheron Constantin and Jaeger LeCoultre, faced pressure with sales down 7% year-on-year. However, this marked a slight improvement from an 11% decline in the previous quarter. Overall sales growth was particularly strong in Europe, the Americas, and the Middle East & Africa, with increases of 11%, 17%, and 17% respectively. Sales in Japan declined by 15% due to high prior-year comparatives and reduced tourist spend, while the Asia Pacific region remained stable despite a 7% decline in China, Hong Kong, and Macau. Citi's Thomas Chauvet and Deutsche Bank analysts highlighted the impressive sales momentum and the sustained appeal of Richemont's jewelry, positioning it as a standout performer in the luxury sector.
