Cartier and Van Cleef & Arpels Shine Bright as Richemont’s Watch Sales Slip

The luxury watch market may be ticking slower, but the jewelry division of luxury conglomerate Richemont, S.A. is sparkling brighter than ever. Wealthy buyers are leaning into branded fine jewelry, as long as it’s the right brand. For Richemont, its Cartier and Van Cleef & Arpels (VCA) labels are leading its financial success, demonstrating that sometimes, it’s all about the sparkle, not the seconds.

Image courtesy: @asafetypin

Richemont closed its 2024 fiscal year with stronger-than-expected results, supported by a robust performance in its jewelry segment. Sales in the Jewelry Maisons division rose 11% in the last quarter. These results offset an 11% decline in the watch division, where it houses several hallmark timekeeper brands including Rolex, Piaget, Panerai, and Jaeger-Lecoultre.

Like Hermès, thus far, Richemont has avoided the cooling of the luxury sector as a whole. While Q1 2025 financial results for LVMH brands Louis Vuitton and Dior, as well as Fendi and Kering’s Gucci, indicated declining sales, Richemont’s Cartier and VCA did not. One possible explanation is a continued bifurcation or stratification of the levels of luxury, with Hermès, Cartier, and VCA sitting at the top of their fields. The common factor among these – exclusivity and limited access to the high-demand products.

Image courtesy: @wienga

Another possible driver of this surge stems from the product itself – high-end jewelry versus fashion. For starters, there is the relative affordability of high-end jewelry compared to handbags. While luxury handbags from the likes of Hermès (if you can get one, that is) and Chanel have now reached eye-watering prices, jewelry from Cartier and Van Cleef & Arpels generally offers a more accessible entry point. This allows a broader spectrum of buyers to engage with Richemont’s offerings, proving crucial to the group’s resilience in a cooling luxury environment.

Unlike many luxury fashion maisons, price increases in the jewelry and watch sectors tend to be less frequent and more measured, reflecting the delicate balance brands must maintain between exclusivity and accessibility. However, both Cartier and VCA increased prices in recent months. Cartier recently pushed forward with its largest global price hike since 2023, raising U.S. prices by an average of 6.9% in May, with even steeper increases on select timepieces.

This pricing strategy is especially intriguing given that Cartier’s watch sales have been slowing. By raising prices, the brand may be aiming to protect its overall profitability by focusing on higher-value sales rather than volume, while reinforcing the exclusivity and prestige of its timepieces.

Van Cleef & Arpels followed a similar path, implementing a global price increase in April 2025. U.S. prices increased by an average of 4.8%, with some high-demand Alhambra pieces climbing as much as 14.3%. Europe saw comparable increases within the Alhambra line, while other coveted collections such as Perlée and Frivole remained untouched.

While Richemont has raised its prices selectively, it appears more cautious than its peers, particularly amid uncertainty around tariffs. Executives have signaled a commitment to keeping prices aligned globally while closely monitoring geopolitical developments and market shifts.

This approach is especially relevant in today’s global luxury landscape, where even modest geographical price inconsistencies can sway where consumers choose to shop. For example, when the Japanese yen lost value in early 2024, clients from China pivoted to purchasing in Japan, leading to an increase in Japan sales even as revenues in China dropped. Similarly, Hermès sales in Japan rose 17% in Q1 2025, largely fueled by Chinese consumers capitalizing on the weak yen.

Image courtesy: @fleurs_et_papillons.

As savvy luxury consumers hop from city to city chasing the best deals, Richemont seems to be trying its hand at the fine art of “priced just right” – for now, at least, the sparkle is safe.

With Richemont’s Cartier and Van Cleef & Arpels shining bright as watch sales slow, are you more drawn to jewelry or timepieces in luxury?

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