Richemont's Jewelry Shines Once More as Luxury Eyes Stronger Year Ahead — Update

By Joshua Kirby

Cartier-owner Richemont said jewelry sales continued to drive revenue growth at the end of the year, offering fresh good news for a luxury-goods sector hoping to build momentum over the year ahead.

The Swiss group, which alongside star jewelers Cartier and Van Cleef & Arpels houses high-end watchmakers like Vacheron Constantin and fashion brands including Chloe, booked sales growth of 11% at constant exchange rate to 6.4 billion euros ($7.45 billion) in the third quarter of its fiscal year through December. That was a little higher than analysts' expectations and marks a moderate pick-up in the pace of growth from its first half.

A strong end-of-year showing by Richemont, one of the world's highest-valued luxury groups with a market capitalization of more than $128 billion, is likely to spur hopes of a continued revival in luxury fortunes and drive sector stocks. The sales "set the tone for the luxury reporting season," analysts at Jefferies said.

Luxury-goods companies had until late last year endured a sustained period of flagging sales, as high inflation and persistent economic clouds damped enthusiasm for splashing out on high-end fashion, jewelry and accessories, especially among the "aspirational" or less well-heeled luxury consumers.

That downturn led to a dip in share prices among luxury-goods makers and triggered a raft of changes to executive and creative leadership last year at some of the industry's top names. In the latter half of the year, the sector began to see green shoots of recovery, including a pick-up in sales growth and net profit at Richemont.

Richemont's mainstay jewelry business, which brings in the great bulk of the group's turnover, led the charge over the quarter with 14% sales growth, outpacing 7% growth in the watchmaking business and 3% in the fashion & accessories division.

"Jewelry is in strong shape, and Richemont dominates it with its brands," analysts at Bernstein wrote following the update, pointing to strong momentum at the group's houses.

Still, weak trading currencies weighed on the unadjusted results, Richemont said. Reported revenue growth was just 4% for the period, including a 2% drop in revenue in the key Asia-Pacific region, the company said. It pointed to a "complex macroeconomic environment marked by weaker main trading currencies and rising material costs [that are] continuing to weigh on margins."

For the wider sector, question marks remain over prospects for a sustained rebound into 2026. China, a vital market for luxury goods, continues to confront a bleak consumer backdrop and geopolitical turmoil is weighing on the wider global mood.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

January 15, 2026 01:54 ET (06:54 GMT)