As luxury buyers become more discerning, the world’s wealthiest continue to invest heavily in fine jewelry — from diamond-encrusted rings to rare gemstone necklaces — even while other segments of the luxury market face slowing demand. However, the super-rich are not just buying any piece; they are increasingly selective, favoring only the most prestigious brands that symbolize exclusivity and craftsmanship. This trend is good news for Swiss luxury group Richemont, which owns some of the most coveted names in jewelry, including Van Cleef & Arpels, Buccellati, and Cartier. As other luxury sectors struggle, Richemont’s jewelry division has emerged as a powerhouse, reinforcing the growing divide between top-tier brands and the rest of the market.
Luxury jewelry remains resilient amid broader market slowdowns
Richemont recently reported stronger-than-expected fiscal fourth-quarter sales, driven by an 11% growth in its Jewellery Maisons division. Over the full year, jewelry was the group’s best-performing segment, growing 8% despite wider luxury sales disappointments across the sector.
This comes as major luxury groups such as LVMH, Kering, and Burberry all reported slower sales in the first quarter, casting doubt on earlier hopes for a quick recovery. Specifically, LVMH’s watch and jewelry division saw flat sales year-on-year, with a 2% organic decline amid weaker demand for marquee brands like Tiffany & Co., Bvlgari, TAG Heuer, and Hublot.
Despite these challenges, Richemont’s chairman Johann Rupert emphasized that the group is gaining market share in jewelry, distinguishing itself from competitors with a strong brand portfolio and customer loyalty.
Watch sales stumble, but jewelry shines
While Richemont’s jewelry division flourishes, the same cannot be said for its watch segment. The Specialist Watchmakers division, which includes Piaget and Roger Dubuis, experienced a 13% sales decline in 2024, largely due to weakening demand in China. Although the decline slowed somewhat in the latter half of the year thanks to a recovery in the Americas, the watch market remains under pressure.
Richemont noted that the global watch market is still absorbing a surge in purchases made during the Covid-19 pandemic, which has temporarily saturated demand. Furthermore, many luxury watchmakers such as Rolex, Patek Philippe, and Audemars Piguet are privately owned, making their market performance less transparent but equally challenged.
Luxury analyst Luca Solca of Bernstein highlights that watches, typically viewed as long-term or lifetime investments, naturally have a slower sales cycle. By contrast, jewelry tends to be purchased more frequently and recently has become relatively more affordable compared to handbags, contributing to its stronger performance.
Challenges and opportunities ahead for Richemont
As global economic uncertainties and trade tensions resurface, Richemont’s focus on high-end jewelry could prove advantageous. The company has taken a cautious approach to price increases, avoiding hikes it cannot sustain — a contrast to some rivals who have signaled aggressive price rises.
Investment director Russ Mould from AJ Bell notes that Richemont is increasingly reliant on its jewelry division to drive growth and hopes that the strength of its brand portfolio will continue to underpin its market position. Nonetheless, analysts caution that Richemont faces ongoing challenges, including a strong Swiss franc against the dollar, rising gold prices, and the effects of tariffs. These factors could put pressure on profit margins and complicate future expansion.
The future of luxury jewelry in a complex market
The luxury jewelry market is proving more resilient than other luxury categories, thanks in large part to the tastes of the ultra-wealthy who remain undeterred by economic headwinds. Richemont’s stronghold on prestigious jewelry brands positions it well to capitalize on this trend, even as watches and other luxury goods experience slower demand.
For the foreseeable future, the divide between the ultra-premium jewelry segment and other luxury categories is likely to widen. With consumers becoming more selective and brand-conscious, Richemont’s portfolio of heritage houses will continue to be a beacon for affluent shoppers seeking exclusivity, craftsmanship, and timeless beauty. However, navigating macroeconomic challenges will require careful strategy to maintain their hard-won dominance in the evolving luxury landscape.
