This Week in Luxury: A Rising Tide Lifts All Boats
This week, Richemont gave the luxury sector a reason to breathe a little easier, signaling that demand for high-end goods might be off to a strong start in 2025.
Richemont’s sales soared 10 percent during the holiday shopping season, buoyed by higher demand in the US and Europe, coupled with smaller-than-expected declines in China. The luxury group behind Cartier and Van Cleef & Arpels delivered a stunning performance for the quarter ending in December, far exceeding analyst expectations of a modest 1 percent growth. Jewellery sales led the charge, helping to offset weaker watch performance, which had previously weighed on the group’s results.
The markets responded in kind. Richemont shares jumped 18 percent for the week, boosting optimism across the sector. Rivals also saw gains, with LVMH up 7.9 percent, Kering rising 7.4 percent, and Hermès climbing 7.5 percent. Analysts are interpreting this as a tentative sign that luxury brands could be turning a corner after a year of lackluster demand amid inflationary pressures and higher price tags. But The Impression caution’s that it is too early to set that course.
In the Asia Pacific region, Richemont’s sales fell 7 percent — but even that outperformed expectations. While the Chinese market remains a pain point, with sales dropping 18 percent due to ongoing concerns over the real estate sector, these results were less severe than anticipated and reflected signs of stabilization.
Meanwhile, Brunello Cucinelli SpA also reported strong results, with quarterly revenue exceeding expectations and an ambitious forecast of 10 percent sales growth for both 2025 and 2026. LVMH, the world’s largest luxury group, is set to report its earnings on Jan. 28, and the industry will be watching closely to see if Richemont’s success signals broader momentum.
As we kick off the Men’s Fall 2025 season, this week’s positive signals offer hope that luxury may be able to continue its streak in the year ahead. With fresh runway collections rolling out and optimism in the air, 2025 could be a welcome year for rising tides for all. Happy sailing.
Warm Regards,
Kenneth Richard
Chief Impressionist
The Impression
