Swiss luxury group Richemont sales have exceeded analyst forecasts as the jewelry boom shows no signs of slowing down.
Richemont announced group sales were up 20% at constant exchange rates to €6.3 billion in the first quarter of fiscal 2027, ending June 30. The group smashed consensus expectations “across the board”, Bernstein analyst Luca Solca wrote in a note. The group’s organic growth was almost twice the level of a forecast of 11%.
Richemont’s jewelry division, which includes Cartier, Van Cleef & Arpels, Buccellati, and Vhernier, grew 24% in Q1 to €4.7 billion, surpassing the previous quarter when jewelry sales grew 16%. Sales at specialist watchmakers, including Vacheron Constantin and Piaget, grew 8% to €873 million. ‘Other’ businesses, including fashion brands Chloé and Alaïa, were up 9%.
Richemont kicks off an earnings season in which jewelry is expected to remain the standout performer while growth in soft luxury stays sluggish. LVMH’s fashion and accessories sales are expected to increase by 1% in its call on July 27, while its watches and jewelry division is forecast to post 8% sales growth. Analysts say Kering’s sales (announced on July 28) are on course to increase by 2%, with jewelry sales up 18%.
By geography, Japan (+36%), the Americas (+27%) and Asia-Pacific (+21%) led growth for Richemont in Q1. “Japan is the biggest source of positive surprise,” Solca wrote. The company cited the strength of local demand and tourist spending. The comparison basis was also somewhat easier: Japan sales dropped 15% in the same period last year.
In Asia-Pacific, sales in China, Macau, and Hong Kong rose by double digits — “which should be viewed positively given concerns around Chinese luxury demand”, Deutsche Bank analysts noted. Growth in South Korea and Taiwan was particularly strong, according to Richemont. South Korea is expected to be a standout market for luxury companies this quarter, thanks to a thriving tech sector with a knock-on effect on wealth, boosting luxury demand.
Europe grew 11% to €1.4 billion, driven by local clients and US and Middle Eastern tourists. Sales in the Middle East and Africa grew 3%, with resilient local demand in the Middle East compensating for softer tourist spending in the region.
Richemont sales are expected to rise 8.8% in 2026, according to the Visible Alpha consensus. “We expect significant upward revisions to fiscal 2027 estimates as a consequence of a strong start of the fiscal year. Richemont remains our top pick,” Solca sums up.
“We view the results as a positive read-across for the broader luxury sector although it remains to be seen how much of the strength was luxury spend, jewelry driven versus Richemont specific,” Deutsche Bank analysts wrote in a note.
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