Richemont Beats Q4 Forecasts as U.S. Demand Offsets Asian Weakness

Luxury goods giant Richemont (SIX:CFR), owner of Cartier and Van Cleef & Arpels, reported a 7% year-on-year rise in fourth-quarter sales, slightly surpassing market expectations despite a slowdown in Asia. The Swiss-based group posted revenue of €5.17 billion ($5.80 billion) for the three months ending March 31, buoyed by strong demand in the United States, where affluent consumers continued to spend on high-end jewelry despite broader economic concerns.

According to consensus data from Visible Alpha cited by HSBC, analysts had expected 6% growth. The result, though above expectations, marks a deceleration from the 10% growth recorded in the previous quarter.

Richemont’s jewelry division led the performance, recording an 11% sales increase. This helped offset an 11% decline in the watches division, which was hit hard by falling demand in China. The ongoing property crisis in China has continued to dampen appetite for discretionary luxury items like high-end timepieces, a trend affecting much of the watch industry.

Luxury brands have been hoping that resilient U.S. consumer spending would lift the sector from its recent downturn. However, since mid-February, economic signals have turned more cautious, and April’s broad tariff announcements have introduced fresh headwinds for global luxury demand.

Despite regional challenges, Richemont’s steady performance underscores the strength of its core jewelry business and its ability to weather geographic volatility. The company remains a bellwether for the luxury sector, which is navigating a complex landscape of shifting global demand and macroeconomic uncertainty. Investors will be watching closely for further signs of resilience or softness in upcoming quarters as luxury brands adjust to evolving market dynamics.