Wealthy shoppers spend on jewelry only if it’s the right brand

With a diamond-covered ring here and a rare jewel necklace there, the world’s wealthiest people continue to be decorated with the best gems, even when the wider gorgeous shoppers are drawn back.

But don’t make any mistakes. One mother’s bracelet should not be confused with another mother’s bracelet. As the super rich grows more selectively, only the best will do.

It writes positive news for a high-class group in Switzerland RichmontIt boasts some of the most popular brands in the luxury jewelry market, including Van Cleef & Arpels, Boucerati and Cartier.

“Richmont jewelry brands are actually at the pinnacle of consumer desirability,” Luca Solca, a Bernstein’s global luxury sector, told CNBC’s Squawk Box Europe.

“There’s no debate. I think the other brands are clearly behind despite LVMH’s efforts to challenge this leadership.”

Richmont on Friday led an 11% growth rate within the Jewelry Mason Division, reporting fourth quarter sales that exceeded expectations. For the whole year, jewelry was also the most powerful segment of the group, with an increase of 8%.

The results conclude the results season from the major luxury names lvhm In Kering And Burberry reported a slowdown in quarterly sales in March, rashing previous hopes of a shift in sectors that it fought.

Specifically, sales within LVMH’s watch and gem segment were flat year-on-year in the first quarter, down 2% on an organic basis in 2024 due to soft demand for major brands such as Tiffany & Co, Bvlgari, Tag Heuer and Hublot.

“We are gaining market share in gemstones from branded and non-branded companies,” Richmont Chairman Johann Rupert said in a revenue call Friday.

But despite the continued appeal of its jewelry brand, Richmont is not entirely unimmunized against headwinds in the broader sector.

Performances in the Specialist Watchmakers division featuring Piaget and Roger Dubuis create a more subtle picture. Richmont watch sales fell 13% in 2024, primarily due to weakness in China. That decline rate was slightly eased later in the year to restore America’s strength.

“The global watch market has experienced a slowdown affecting volume, leading to weaker demand in China and increased resilience in the high-end price segment,” the company said in its report.

It clouds the photos even more, with many other premium Swiss watchmakers privately owned, including Rolex, Patek Philippe and Ardmers Piguet, making it difficult to decipher performances.

But macroeconomics aside, Bernstein’s Solka said the fundamental nature of the luxury watch market (usually positioned in the long term, if not lifetime) inevitably slows rebounds.

“Everyone will take a long time for dogs to be careful and digest from Covid-19. So we hope that the clock will be in the back for a while,” he said.

“People buy jewelry more often and jewelry is also cheaper than handbags last year, which makes it a better dynamic in that category.”

The growth of the high-end jewelry market and other haute couture staples such as fashion and leather products can stand in Richmont amidst the headwinds of global trade.

Rupert, Richmont, said Friday that the company will not take a price hike that cannot be sustained.

“Business is increasingly dependent on jewellery arms and we hope that the strength of the brand in this sector will keep it going,” AJ Bell investment director Russ Mold said in a memo on Friday.

Nevertheless, analysts warn that the company could still face challenges that threaten market dominance.

“Richmont continues to face several important headwinds, including the strength of the Swiss franc on the dollar, rising gold prices and the impact of tariffs,” Mold added.