Editor’s Note
This analysis highlights how Richemont’s focus on high-end jewellery, particularly its Cartier brand, has delivered resilient performance in a softening luxury market. The results underscore a broader industry trend where enduring brand equity and category strength are becoming key differentiators.
As global luxury spending softens amid economic uncertainty and evolving consumer habits, investor attention is narrowing in on the categories most capable of sustaining long-term growth. The global luxury sector is navigating a period of deceleration, with softer demand in key markets prompting brands to rethink pricing, distribution and growth strategies. Against this backdrop, Richemont’s latest performance reinforces the defensive strength of high jewellery and hard luxury, positioning the group as one of the sector’s steadier performers in a volatile market.
Richemont, the Swiss luxury conglomerate that owns Cartier, Van Cleef & Arpels, Buccellati, IWC, Jaeger-LeCoultre, and Piaget, has reported a strong start to 2026 with third-quarter sales that exceeded market expectations.
For the period from September to December 2025, group revenue reached 6.4 billion euros, representing an 11 percent increase in constant currencies. This performance surpassed analyst estimates of 7.5 percent growth and reflects a recovery in global demand for high-end jewellery and watches following a challenging 2025 for the luxury sector. The luxury sector was expected to decline this year but Richemont shares rose five percent after quarterly results.
Richemont was closely monitoring U.S. tariffs as it navigates price strategies post-pandemic. Unlike some peers, the luxury group has been cautious in raising prices but remains open to adjusting to mitigate tariff impacts while maintaining global price consistency.
Potential U.S. tariffs could reach 20% on European fashion and 31% on Swiss watches, though most were temporarily paused in April, leaving a general 10% duty. Competitors like Hermès have opted to pass tariffs fully onto U.S. customers. Meanwhile, concerns over a global recession have led Bain to revise its luxury sales forecast downward, projecting a 2% to 5% decline in 2026 after a 1% drop in the year 2024.
The company’s jewelry division led the growth with a 14 percent increase, supported by holiday season demand and strong consumer interest in signature pieces. Sales were particularly robust in the Americas where both local clients and international tourists contributed to higher revenue. In Asia, Hong Kong and Macau showed notable improvement, marking the second consecutive quarter of growth after a year of subdued demand due to real estate market challenges and changing consumer preferences. Mainland China demonstrated a cautious but stabilising recovery with demand slowly improving in key cities and among high-net-worth clients. Japan was another significant contributor, posting a 17 percent increase in sales compared to the same period in the previous year.
Richemont’s watchmaking segment also delivered positive results, with IWC, Jaeger-LeCoultre, and Piaget generating a 7 percent increase in revenue. This growth occurred despite higher material costs and pressures from a strong Swiss franc, which affected margins across the group.
The company’s results have been interpreted as an early indicator for 2026, signalling the resilience of luxury brands in multiple markets. Strategic management of inventory and pricing, combined with the continued appeal of heritage brands, allowed Richemont to maintain growth across regions. Shares in Zurich opened higher following the announcement before adjusting slightly as investors assessed the group’s valuation and margin pressures.
Overall, Richemont’s performance demonstrates sustained demand for premium jewelry and watches in the Americas, Asia, and Japan while showing early signs of stabilization in China. The group’s ability to navigate rising costs, currency fluctuations, and regional market variations positions it well for the year ahead. Revenue growth in jewellery, steady performance in watches, and selective geographic rebounds suggest that Richemont remains a key bellwether for the global luxury goods industry.
