Cartier owner Richemont reported stronger-than-expected quarterly sales on Thursday, buoyed by increased demand for high-end jewellery and continued growth in greater China, a crucial market and bellwether for the luxury sector.
The world’s second-largest luxury company, which owns other brands including Van Cleef & Arpels and Buccellati, said sales in the third quarter, from September to December, rose to 6.4 billion euros ($7.45 billion), a 4% year-on-year increase in reported currencies.
That beats an analyst consensus of 6.28 billion euros cited by Visible Alpha and represented an 11% increase when measured in constant currencies.
Richemont, among the first of the world’s luxury companies to report figures for the end of 2025, highlighted continued improvement in China, Hong Kong and Macau, where its sales rose by 2%.
Shares in the company were indicated 4% higher in premarket activity in Zurich.
Critical Chinese Market Continues Growth Rebound
The greater China performance “mostly led by solid activity in Hong Kong” was the second quarter in a row that Richemont has reported improved sales in the region, following a 7% rise in the previous three months.
China has been luxury’s main growth engine in recent years, but has been struggling with a sticky real estate crisis and a shift in consumer appetite that has weighed on demand for Western brands.
Richemont’s reported trends from China “may be regarded as a pivotal moment”, RBC analyst Piral Dadhania said in a note, adding that its performance is a positive signal for the wider luxury sector.
Demand in China, where most European houses saw their sales decline heavily last year, is seen as a decisive factor for the luxury industry to return to sustained growth.
“The Chinese consumer holds the key to luxury and is thus the critical sector theme for 2026,” Berenberg analyst Nick Anderson said in a recent note to clients.
Richemont’s jewellery sales, meanwhile, were up 14% helped by the launch of novelty items such as bracelets and pendants, which tended to be slightly cheaper and were popular during the gifting season.
The company’s watchmaking business, which includes the IWC and Jaeger-LeCoultre brands, lifted sales by 7%.
A First Glimpse At Luxury Goods Demand
Richemont’s trading update provides the first clues on demand for luxury goods in a new year that has been marked so far by more geopolitical turmoil and the bankruptcy of one of the sector’s largest retail groups, Saks Global.
LVMH is due to report its annual results later this month, followed by Hermes and Kering in February. Smaller Italian cashmere brand Brunello Cucinelli was the first luxury brand to report quarterly sales this week.
“Overall, a very strong set of figures and jewellery remains the driver,” said Kepler Cheuvreux analyst Jon Cox.
“China/Hong Kong combined slowed down from Q2’s 7%, but that is more to do with comparables. No one is really expecting a V-shaped recovery in the region but certainly stabilisation,” he added.
