Editor’s Note
Richemont’s robust fourth-quarter performance, led by its iconic Cartier jewelry sales, offers a positive signal for the luxury sector as it seeks to maintain growth momentum in the year ahead.
Cartier’s parent company, Richemont, indicated that strong year-end jewelry sales continued to drive revenue growth, bringing new positive news for the luxury goods industry, which is hoping to strengthen its momentum in the coming year.
The Swiss group, which owns star jewelry brands Cartier and Van Cleef & Arpels, as well as high-end watchmaker Vacheron Constantin and fashion brand Chloe, reported an 11% increase in sales at constant exchange rates to €6.4 billion (approximately $7.45 billion) for the third fiscal quarter ended December. This figure exceeded analysts’ expectations, signaling a warming and recovery in growth pace compared to the first half of the year.
Richemont is one of the world’s highest-valued luxury goods groups, with a market capitalization exceeding $128 billion. The group’s strong performance at year-end may fuel hopes for a sustained recovery in the luxury goods industry’s sentiment and boost its stock. Analysts at Jefferies stated that these sales figures “set the tone for the luxury goods industry’s earnings season.”
Until the end of last year, luxury companies had been enduring a period of persistently soft sales, as high inflation and sustained economic headwinds dampened enthusiasm for purchasing high-end fashion, jewelry, and accessories, particularly among “entry-level” or non-wealthy luxury consumers.
This downturn led to a decline in stock prices for luxury manufacturers and triggered a series of changes in senior management and creative leadership at some top companies last year. In the second half of last year, the industry began to show signs of recovery, including Richemont’s sales growth and net profit rebound.
Richemont’s supporting jewelry business contributed the vast majority of the group’s profit, with the department leading this quarter with a 14% sales growth rate, outpacing the 7% growth of the watch business and the 3% growth of the fashion and accessories department.
Richemont indicated, however, that soft trading currencies put pressure on unadjusted performance. The company stated that during the reporting period, reported revenue growth was only 4%, including a 2% decline in key Asia-Pacific revenue.
For the broader industry, whether the rebound can be sustained and extended into 2026 remains unknown. Geopolitical turmoil is also putting pressure on broader global sentiment.