【Shanghai, Ch】Fashion Intelligence｜High-End Jewelry Still Sees Double-Digit Growth, Burberry’s Price Cuts Show Initial Results

While the overall growth of the luxury market is slowing, Richemont, the parent company of Cartier, delivered a stellar performance. On July 16, the luxury giant announced its Q1 FY2026 results for the period ending June, with sales reaching €5.412 billion, a 6% year-on-year increase at constant exchange rates. Sales for the Jewelry Maisons division, which includes Cartier, Van Cleef & Arpels, and Buccellati, grew by 11% to €3.914 billion, accounting for over 70% of the group’s revenue. This marks the third consecutive quarter of double-digit growth for the jewelry business, exceeding analyst expectations. While sales in Japan declined by 15% due to a high comparison base, all other markets saw double-digit growth, with the Americas and Middle East/Africa reaching 17%. The group stated in its earnings report:

The Fashion & Accessories Maisons segment underperformed expectations this quarter, further confirming the industry’s broader trend of tilting towards hard luxury. Categories like jewelry, with high price points and strong value retention, are becoming the focus of major groups’ resources and strategies. Meanwhile, soft luxury categories such as apparel and footwear are more sensitive to macroeconomic fluctuations.

After proactively reducing prices on handbag categories, Burberry’s transformation is showing initial results. Last Friday, the British luxury brand announced its latest quarterly performance. Revenue for the period ending June was £433 million, a 6% year-on-year decline, a significant improvement from the 15% drop in the previous quarter. Regionally, Europe, the Middle East, and Africa achieved 1% growth, while the Americas saw a 4% rebound. However, the Asia-Pacific market remains under pressure, with Greater China declining by approximately 5%. The brand stated that sales of core products like trench coats and scarves remained solid, and new seasonal marketing campaigns also helped drive renewed interest. July marks the one-year anniversary of CEO Joshua Schulman’s tenure. The executive, who hails from the accessible luxury and department store sectors, launched the “Burberry Forward” plan last November, initiating a brand repositioning. Over the past year, the company has adjusted by streamlining SKUs, enhancing in-store experiences, and focusing on British heritage, showing its first signs of improvement this quarter. It is also advancing cost control and organizational streamlining, with full-year cost savings expected to reach £80 million. Although the recovery in Asia-Pacific remains uncertain in the short term, Burberry’s direction is becoming clearer: solidifying its moat around core brand assets and attracting younger customers by blending classic and modern elements. Schulman also noted that the external environment remains challenging and Burberry’s transformation is still in its early stages.

The LVMH group has made another move, this time targeting the “quiet luxury” trend. Recently, Parisian high-end knitwear brand Molli announced that it has received a minority equity investment from LVMH Luxury Ventures, LVMH’s venture capital fund. The specific transaction details were not disclosed. This is the brand’s first fundraising since it was taken over by former L’Oréal executive Charlotte de Fayet in 2014. The funds will be used primarily for global expansion, including opening new stores in key European cities and strengthening e-commerce channels. Founded in 1886, Molli specializes in high-end knitwear, produced in France and Italy. It currently operates four directly-owned stores in Paris and has about 100 retail partners. Last year, Molli’s sales exceeded €8 million, and it is projected to surpass €10 million this year, with 35% coming from cross-border e-commerce. Similar to Loro Piana, which has been acquired by LVMH, Molli’s knitwear is also priced at a premium, with a single top costing over $5,000. From Loro Piana to Brunello Cucinelli, luxury knitwear brands have been favored by capital in recent years, with their performance outpacing peers, proving the market value of “quiet luxury.” Molli CEO Charlotte de Fayet mentioned that this equity partnership will bring the brand resources for international market operations, a more professional team, and craftsmanship innovation capabilities. She also noted that its “knitwear aesthetic symbolizing professional quiet luxury and sustainability” aligns with LVMH’s investment direction.

To celebrate its 270th anniversary, Swiss haute horlogerie brand Vacheron Constantin launched the “Odyssey” limited-time experiential space at Zhang Yuan in Shanghai in July, marking its first stop in mainland China. The exhibition is divided into seven themes, showcasing over 60 museum-grade timepieces, movements, watchmaking tools, and archival materials. The “Eyes on the World” section presents Vacheron Constantin’s works inspired by Chinese aesthetics, such as the 2024 “Tribute to Chinese Cultural Symbols” collection, which interprets the “sea, water, mountain, and cliff” pattern in a modern way. The “In Partnership with the Louvre” section displays four “Métiers d’Art” timepieces paying tribute to ancient Egyptian, Greek, Roman, and Persian civilizations. The complex craftsmanship for which haute horlogerie is most renowned can be explored in the “Exceptional Watchmaking” section. A special interactive installation showcases the various timing functions of the 2024 “Les Cabinotiers The Berkley Grand Complication,” currently the world’s most complex timepiece, integrating 2,877 components and 63 complications, including the world’s first Chinese Perpetual Calendar function.

In June, Chanel launched the first issue of its new publication, “Art & Culture,” focusing on its artistic collaborations and cultural projects over the past five years. This approximately 250-page English-language magazine is printed in a large format and was simultaneously launched in 23 independent bookstores worldwide, including Banana Fish in Shanghai and postpost in Beijing. The inaugural issue focuses on the diverse perspectives of artistic creators and cultural dialogues, featuring articles on Cao Fei, Lu Yang, Savanah Leaf, and Tracey Emin, and specially presenting the portfolios of CHANEL Next Prize winners. It also delves into the brand’s own artistic heritage: an interview with architect Peter Marino, a contribution by art historian RoseLee Goldberg, and works specially photographed for the CHANEL History Collection by photographer Roe Ethridge (including items from Gabrielle Chanel’s private apartment collection and works from the brand’s heritage department). As luxury brands expand their cultural footprint, Chanel needs to reaffirm its role as an arts patron and cultural narrator, also demonstrating its long-term commitment within the global cultural context.