Richemont reported first-quarter revenue growth of 13 percent at constant currency, well ahead of the 6 percent consensus, as its jewellery maisons continued to defy the broader luxury slowdown. Cartier and Van Cleef and Arpels together grew 17 percent, while the specialist watchmakers division returned to positive territory for the first time in five quarters. Shares in Geneva rose 8 percent, and the results reinforced the widening chasm between hard-luxury pure-plays and diversified rivals stuck in soft-goods purgatory.
Key takeaways
- Group revenue of EUR 5.9 billion beat consensus by roughly 6 percent.
- Jewellery maisons grew 17 percent — Cartier led at 19 percent.
- Watches returned to growth after five consecutive negative quarters.
- Americas and Middle East offset continued Chinese weakness.
The bifurcation trade
Global personal luxury is on track to shrink 2 percent in 2026, yet hard luxury — jewellery and high-end watches — is compounding at double digits, a divergence that is reshaping the sector's investment case.
- Jewellery's share of Richemont revenue climbed to 71 percent.
- US client spend rose 22 percent, driven by high-net-worth cohorts.
- Japan grew 34 percent on continued tourism and weak yen tailwinds.
- Mainland China declined 9 percent but at a decelerating pace.
Why jewellery is winning
Unlike handbags, high jewellery carries commodity backing, stable resale value and a client base skewed to inflation-insulated wealth cohorts.
The Cartier flywheel
Love bracelets and Trinity pieces remain price-inelastic, and the maison lifted global prices 6 percent in April without any measurable volume impact.
What could break the trade
A sharp gold price correction or a US wealth-effect reversal from equity markets would be the clearest catalysts to test jewellery's resilience.
Luxury scorecard
| Group | Q2 organic growth | Category mix |
|---|---|---|
| Richemont | +13% | Hard luxury |
| Hermes | +11% | Leather goods |
| LVMH | +2% | Diversified |
| Kering | -9% | Soft luxury |
In a slowing luxury market, gold and diamonds are outrunning leather and canvas — and the gap is widening every quarter.
Frequently asked questions
Is the YNAP disposal finally closed?
Yes — the sale to Mytheresa completed in April, removing a persistent margin drag.
How exposed is Richemont to China?
Mainland China accounts for roughly 22 percent of group revenue, down from 27 percent in 2023.
Are watches truly recovering?
Independent specialist volumes are still soft, but retail sell-through and pre-owned pricing have both stabilised.
The bottom line
Richemont has become the cleanest proxy in listed markets for the hard-luxury thesis, and this quarter's numbers show the trade still has room to run.
