Despite an overall dip in sales, Richemont’s jewelry maisons—Cartier, Van Cleef & Arpels, and Buccellati—have proven to be unstoppable. The luxury powerhouse reported a 2% year-on-year increase in jewelry sales for the first half of the fiscal year, reaching EUR 7.09 billion ($7.6 billion). But what’s behind this success, and how are these iconic brands bucking the downturn?
Jewelry Leads While Watches Lag
Strength in the Americas and Japan helped offset weaker performance in China, which is still recovering from the effects of Covid-19. With operating profits at Richemont’s jewelry houses down just 5%, compared to a staggering 59% drop in profits from its specialist watchmakers like Piaget and Vacheron Constantin, it’s clear where the company’s resilience lies.
Gold Prices Impact Profits—but the Jewelry Brands Keep Sparkling
Higher raw-material costs, particularly for gold, impacted profits, but Richemont’s jewelry maisons still managed to shine. Chairman Johann Rupert attributed the stability to a balanced geographic mix and the continued strength of their jewelry brands. “In a world where uncertainty has become the norm, Richemont has demonstrated resilience,” Rupert said.
Will Cartier and Van Cleef & Arpels continue to carry Richemont through tough times? With new acquisitions and strong demand in key regions, the luxury group’s jewelry maisons are certainly proving they are worth their weight in gold.