Richemont Sales Beat Expectations in Holiday Quarter as Jewelry Drives Growth

Richemont, the Swiss luxury group that owns Cartier, reported third-quarter sales of 6.4 billion euros, surpassing analyst expectations. The group’s jewelry division drove the growth, achieving 14% sales growth at constant exchange rates. This marks a modest acceleration from the first half of the fiscal year.

The luxury sector had faced a prolonged downturn due to high inflation and economic uncertainty, which dampened demand among lower-tier consumers. However, Richemont and other luxury firms began to see signs of recovery in the latter half of 2025. Jewelry sales, in particular, remain a key growth driver for the group.

At actual exchange rates, Richemont’s sales rose 4% during the period. Currency fluctuations, particularly weaker trading currencies, affected reported revenue growth. In the Asia-Pacific region, a key market for the company, revenue fell 2% year-over-year.

Jewelry Maisons accounted for the largest share of Richemont’s revenue. Sales from this segment climbed 14% at constant exchange rates to 4.8 billion euros.

The Watchmakers segment, including brands like Vacheron Constantin and Patek Philippe, saw more modest growth at 7%. The Other segment, which includes fashion and accessories, reported stable sales at constant exchange rates.

Richemont’s retail channel remains the largest distribution channel, accounting for 72% of total sales. Retail revenue rose 12% at constant exchange rates.

For the nine months ended December 31, 2025, Richemont reported total sales of 17 billion euros, reflecting 10% growth at constant exchange rates. This performance supports optimism for a broader revival in the luxury goods sector.

Why Did This Happen?

Strong demand in the Americas, Japan, and the Middle East helped offset the impact of currency fluctuations. The Americas saw 14% sales growth, while Japan posted a 17% increase. The Middle East and Africa region recorded a 20% rise in sales.

Despite a challenging macroeconomic environment, jewelry remained a resilient category for Richemont. Analysts attribute this to the enduring appeal of high-end jewelry and the brand strength of its portfolio.

How Did Markets React?

The broader luxury sector has been cautiously optimistic about a potential recovery. Richemont’s results reinforce these expectations. Analysts at Jefferies said the sales "set the tone for the luxury reporting season."

However, risks remain. Analysts note that China, a crucial market, continues to face a difficult consumer environment. Additionally, geopolitical tensions and protectionist measures pose challenges for global trade and consumer sentiment.

Richemont’s reported growth is a positive sign for the sector, but investors remain cautious about the sustainability of the recovery.

What Are Analysts Watching Next?

Analysts are closely monitoring regional performance, particularly in the Asia-Pacific region. The weak trading currencies and declining sales in China could weigh on future results.

Additionally, the luxury sector is assessing whether the current momentum is a temporary rebound or a more sustained recovery. Factors such as consumer confidence, economic stability, and brand performance will be critical to watch.

Richemont’s management emphasized its strong cash position and the importance of maintaining operational efficiency. The company's net cash stood at 7.6 billion euros as of December 31, 2025. This financial strength provides a buffer against potential headwinds.

Investors are also watching how Richemont and other luxury firms adapt to changing market conditions. Strategies to enhance brand differentiation and customer loyalty may become increasingly important.

The results highlight the importance of jewelry in the luxury goods sector. As the year progresses, continued demand for high-end jewelry could drive broader sector growth.

What Lies Ahead?

Richemont’s performance in the third quarter provides a positive outlook for the luxury industry. However, the company must navigate ongoing challenges, including currency fluctuations and regional demand variations.

Investors are likely to focus on how Richemont and its peers manage these risks. The ability to sustain growth in key markets and adapt to economic shifts will be critical to long-term success.

For now, the strong showing by Richemont offers hope for a broader recovery in the luxury sector. As the reporting season continues, other luxury firms will be under scrutiny to confirm this trend.