Editor’s Note
Richemont’s strong first-half performance, led by its jewelry division, signals a potential rebound in the luxury sector. While challenges like US tariffs and material costs persist, emerging positive signs in China and possible US tax relief offer a cautiously optimistic outlook.
With half-year sales exceeding expectations, driven by its jewelry division, the Swiss group exemplifies the renewed dynamism beginning to take hold in the luxury sector. Richemont faces headwinds, including US surtaxes and rising raw material prices. However, prospects are improving with tentative positive signals in China and the hope of tax reductions from Washington.
Richemont’s sales have increased thanks to stronger-than-expected demand in America and the region including China, the latest sign that the luxury industry is recovering.
Luxury is showing signs of recovery, and Richemont is the latest example. The jeweler and watchmaker announced on November 14 that its revenue for the six months to September 30 had grown by 10% compared to the same period the previous year, at constant exchange rates. Jewelry, the heart of the Swiss group with brands Cartier and Van Cleef & Arpels, remains the driving force with 14% growth for the half-year, where analysts had expected 10.3%.
These results confirm that Richemont is “the luxury company with the fastest growth,” according to Jefferies. The Swiss giant has weathered the sector’s slowdown better than most of its competitors thanks to the shimmering allure of its expensive jewelry, which, in times of economic uncertainty, is often considered a better store of value than luxury clothing and bags. This is the difference between “hard luxury” and “soft luxury.”