Editor’s Note
Richemont’s latest quarterly results underscore the resilience of the luxury jewelry sector, with brands like Cartier and Van Cleef & Arpels driving growth above market forecasts. This performance highlights enduring consumer demand for high-end hard luxury even amid broader economic uncertainties.
Swiss luxury group Richemont, owner of Cartier and Van Cleef & Arpels, reported a 6% increase in sales for the first quarter of the 2025 fiscal year ending June 30, reaching 5.4 billion euros (approximately 8.7484 trillion won) on a constant currency basis compared to the same period last year. This figure, representing a 3% growth at actual exchange rates, exceeded market expectations.
The key driver of the performance was unequivocally the jewelry division. Sales in the jewelry segment surged by 11% year-on-year, led by strong sales at major brands like Cartier and Van Cleef & Arpels, marking the third consecutive quarter of double-digit growth.
In contrast, the fashion and accessories segment saw a slight decline of -1%, while the watchmaking division recorded a -7% decrease. This was attributed to external factors such as weak global demand, delayed recovery in the Chinese market, and concerns over US tariffs.
Regionally, the Americas recorded the strongest growth with a 17% sales increase, followed by Europe, the Middle East, and Africa with an 11% rise. Conversely, Japan showed a significant decline of -15%. The Greater China region, including China, Hong Kong, and Macao, also decreased by -7%.
Following the earnings announcement, Richemont’s stock price rose nearly 2% and is up nearly 9% since the beginning of the year, suggesting its jewelry-centric strategy is working effectively.
However, several risk factors could impact Richemont’s future performance. Firstly, the price of gold has surged by approximately 30% year-on-year, increasing cost pressures. Pressure from the strong Swiss franc also persists. Furthermore, concerns are emerging that the US may impose tariffs of up to 31% on Swiss-made products, which could impact profitability.
There are also forecasts that achieving balanced overall growth will be difficult if the recovery in Asian markets, including Japan and China, is delayed. Moving forward, Richemont is expected to maintain its growth momentum in Europe and the Americas while responding to risks through strategies for Asian market recovery, cost structure improvements, and price policy adjustments.