So how’s the luxury industry faring, as brands and pundits wait and anticipate a rebound? Perhaps a bellwether of what is to come, luxury conglomerate Richemont reported “strong” results for the financial quarter ending June 30, 2026, up 20% (at constant exchange rates). Sales in its jewelry division — which houses Cartier, Van Cleef, Buccelati among others — led the charge, jumping 24% (at constant exchange rates).
Notwithstanding what Richemont terms a “volatile context,” sales rose in every division. The watchmaking division, which includes Jaeger-Le Coultre and Piaget, grew 8%, while the fashion and accessory group that houses Alaia, Chloe, and Gianvito Rossi saw sales up 9%.
Cartier Champagne served @ARLA July 14th, 2026. Served during a special dinner hosted by Cartier @pursebop
Geographically, all regions saw double-digit growth, except the Middle East and Africa. Japan led the results with a sales spike of 36%, attributed to tourist and local spending. Sales in the Americas rose 27% and in Europe by 11%. Perhaps most interesting and encouraging for the industry is that Asia Pacific demonstrated 21% growth, attributed by Richemont to high demand in Hong Kong and Macau, as well as strong growth elsewhere in the region.
Image courtesy: @pursebop Photo with @caitlanger at Cartier dinner, ARLA July 14th, 2026
Of course, the big question is what this indicates for the rest of the luxury industry. Next week, LVMH, Hermès, and Kering will report financials for this period along with their results for the first half of 2026. Unlike Richemont, where jewelry accounts for more than half of its sales, LVMH and Hermès sales are dominated by fashion, leather, and accessories.
As Bernstein analyst Luca Solca told Reuters, jewelry is selling due to its intrinsic value, which appeals to both the ultra-wealthy consumer and the aspirational shoppers seeking “value-for-money.” By some reports, particularly after years of price increases, handbags are losing prestige and are no longer the purchase of choice, as shoppers shift their attention to jewelry.
On the other hand, Richemont’s fashion brands also saw growth, albeit not as robust. Nine percent isn’t the same as 24%, but may be enough to satisfy those gloomy about the industry.
Next week’s reports will tell us more.
What do you think?
Comments