The shopkeeper passes a jewelry display in the luxurious VAN Cleef & Arpels window for goods, run by CIE. Richemont SA, via Montenapoleone in Milan, Italy.
Bloomberg Gety pictures
With a conceited ring of diamonds here and a rare gemstones there, the richest wealthy in the world continues to decorate themselves with the finest jewelry even with the withdrawal of the wider other shoppers.
But do not make mistakes, it should not be confused with a pearl bracelet with someone else. With the growing wealthy people, more selective, only increasing will be the best.
This explains the positive news of the Swiss luxury group RichmontWhich includes some of the most popular brands in the luxury jewelry market, including Van Cleef & Arpels, Buccellati and Cartier.
“The brands of jewelry in Richmont are actually on top of the consumer.”
“There is no discussion. Despite the efforts made by LVMH to challenge this driving, I think other brands are clearly late.”
Richmont on Friday I mentioned A quarter -financial sales are better than expected, leading 11 % growth in the MAISons Jewelry section. For the whole year, jewelry was also the most powerful group sector, as it grows by 8 %.
The results revolve around the season of the results in which the names of the main luxury of LVHM to dry and barbaric It was reported that sales slowdown in the quarter to March, which led to previous hopes of shift in the besieged sector.
The sales in the LVMH monitoring and jewelry department, specifically, were fixed on an annual basis in the first quarter, after decreasing by 2 % on an organic basis in 2024 amid more softening demand for major brands such as Tiffany & Co, Bvlgari, Tag Heuer and Hublot.
“We gain the market share in jewelry, from brand and non -brand companies,” Johann Robert, Richmont president, said during the Friday profit call.
The hours fall out of fashion
Although the brands of jewelry are continuing, however, Richemont is not completely fortified of the wider sectoral opposite winds.
The performance of the Specialized Watch Manufacturers Department, which includes Piaget and Roger Dubuis, paints a more accurate picture. The Richmont watch sales decreased by 13 % in 2024, primarily leading to weakness in China. This decrease declined just a little in the second half of the year, thanks to the force of restoration in the Americas.
The company said in its report: “The global watch market has witnessed a slowdown that affects the folders. This has led twice the demand in China, with more elasticity of the advanced price sectors.”
Everyone and their dog bought a Covid-19 guard and it will take some time to digest.
Luka Solka
The head of the sector for global luxury goods in Bernstein
The image closes more, many other Swiss watch makers, including Rolex, Patique Philip, and Audemars Piguet, are owned by special ownership, making their performance difficult.
Regardless of the macroeconomic economy, Bernstein’s Solca said that the main nature of the luxury watch market-where products are usually placed in the long run, if not age, purchases-make them slow to recover.
He said: “Everyone and their dog bought a guard from Covid-19 and it will take some time to digest. So I expect the watches to be equal for a longer period.”
“People buy jewelry more frequently, and jewelry has also become cheaper for handbags last year, and then the best dynamic in this category.”
Possible opposite winds
The growth of the advanced jewelry market against other high -end fashion foodstuffs such as fashion and leather goods can stand a good position in a good position in the opposite winds.
Richmont Robert said on Friday that the company will not take an increase in prices that cannot be maintained, as contradictory price warnings rise from prices. Another luxury and Jewelry players.
Cartier, unit of CIE. Richemont SA, luxurious watches sit at the front of a store.
Bloomberg Gety pictures
“The company is increasingly dependent on its jewelry arm and it will hope that the strength of its brands in this field will be preserved,” Rosol, AJ Bell’s investment manager said in a memo on Friday.
However, analysts warn that the company may face challenges that threaten market dominance.
“Richmont continues to face many important opposite winds, including the power of the Swiss franc against the dollar, the high gold prices and the impact of definitions,” he added.
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