Editor’s Note
Richemont’s record holiday sales, driven by strong U.S. and Middle Eastern demand for Cartier, highlight how celebrity influence and high-end jewelry remain powerful forces in the luxury sector.
Richemont, the owner of luxury brands including Cartier, reported record sales in the final months of last year, driven by increased spending from holiday shoppers on its Cartier watches and jewelry, fueled by demand in the United States and the Middle East. The Cartier brand is experiencing a significant surge in popularity as celebrities like Taylor Swift and Timothée Chalamet boost the appeal of its diamond-studded jewelry and watches.
Sales — at constant exchange rates — rose 11% in the fiscal third quarter, the Swiss luxury group reported in a statement on Thursday. This exceeded the average analyst estimate of 7.5%. Sales in the jewelry division increased by 14%, also surpassing expectations.
All divisions grew, including the watchmaking unit, which saw a 7% sales increase — a particularly robust figure given the recent overall weakness in the watch market. US tariffs, exchange rates, and rising material costs had dampened expectations for the unit that includes brands like Jaeger-LeCoultre and Piaget.
Richemont’s shares rose up to 3% in Zurich. Other companies in the sector, such as Swatch Group AG and Hermes International SCA, also recorded gains on Thursday.
Richemont has accumulated a gain of nearly 26% over the past 12 months, outperforming French LVMH, the world’s largest luxury group, which saw little change.
Richemont has weathered the luxury sector downturn better than most of its rivals, thanks to the appeal of its expensive rings and bracelets, which are often considered a better store of value than expensive clothing and leather goods. In the December quarter, demand was strong in the Americas, while tourists from the Middle East boosted sales in Europe, according to the company.
The final months of the year are the most important for luxury brands due to holiday spending, and Richemont’s results may fuel hopes that the widespread downturn in the sector, particularly in China, is easing. Sales in Hong Kong boosted the company’s performance in the region, while Japan also exceeded expectations with a 17% increase.
Earlier this week, Brunello Cucinelli published a series of reassuring figures, according to analysts, who welcomed a relatively calm report considering the recent volatility in the sector. The Italian brand sells cashmere and vicuña bomber jackets.
