Jewellery sales rose 8% at constant exchange rates for the fiscal year ending March, surpassing analysts’ expectations of a 7.54% increase. The momentum continued into the most recent quarter, with the jewellery division posting an 11% jump in revenue—highlighting Cartier’s continued dominance in a market facing slowing consumer demand.
The upbeat results sent Richemont shares soaring as much as 5.5% in early Swiss trading, bringing the stock’s year-to-date gain to around 15%, in stark contrast to the 17% drop seen at rival LVMH Moët Hennessy Louis Vuitton SE.
With jewellery accounting for roughly 72% of Richemont’s total sales, the category has proved to be a pillar of strength amid headwinds facing other luxury segments, such as fashion and leather goods. While LVMH has seen sluggish demand for brands like Christian Dior and jewellery houses like Bulgari and Tiffany, Richemont has been gaining market share, particularly through Cartier’s consistent appeal.
“Richemont continued to gain significant market share in jewellery,” said Jean-Philippe Bertschy, analyst at Vontobel Equity Research. “Growth and profit are spectacular, especially when comparing to key competitor LVMH.” However, he cautioned that the company is not immune to ongoing macroeconomic volatility.
Despite global pressures—including softer Chinese demand and rising geopolitical tensions—Richemont posted double-digit sales growth across key regions. Fourth-quarter sales rose 16% in the Americas, 13% in Europe, and 22% in Japan. While sales in Asia (excluding Japan), which includes China, declined 7%, this was an improvement on the 13% drop recorded over the full year.
Chairman Johann Rupert expressed cautious optimism about a rebound in China, noting that consumers are still psychologically impacted by strict pandemic-era lockdowns. “It’s a matter of time before they feel relaxed again—they have a lot of savings,” he said. “I expect that when consumers get a bit more confident, things will return to normal.”
Richemont has responded to mounting cost pressures—including U.S. tariffs and a surge in gold prices—by raising prices at Cartier and Van Cleef & Arpels. Gold prices have jumped over 20% this year, fuelled by geopolitical uncertainty and investor demand for safe-haven assets.
“This sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on our profitability,” the company said in a statement.
Still, annual operating profit came in at €4.47 billion ($4.48 billion), slightly below analyst forecasts of €4.55 billion, reflecting the broader pressures on margins despite strong sales growth.
As Richemont navigates volatile market conditions, its performance underscores the unique resilience of fine jewellery in the luxury space—particularly when backed by iconic brands like Cartier.