Richemont up 20% while LVMH falls
Richemont’s shares surged 20% this week while LVMH slipped about 5%, showing a widening gap between the two luxury powerhouses.
Quarterly sales diverge sharply
Richemont reported fiscal first‑quarter revenue of EUR 6.33 billion for the three months ended June 30, a 20% rise at constant exchange rates. The growth came largely from its high‑end Cartier and Van Cleef & Arpels lines, which have kept demand steady despite broader market turbulence.
LVMH’s half‑year figures show EUR 5.15 billion in watches and jewels, down 5% on a reported basis and 3% on an organic basis. The group’s overall organic revenue grew just 2% in the first half, accelerating to 3% in the second quarter, while net income held at EUR 5.7 billion year over year.
Hard pieces outpace fashion‑linked items
Dealer floors reflected the split. Signed pieces and top‑tier steel sport models moved quickly, whereas mid‑tier fashion‑oriented products lingered. At the IWJG auction, bidders bypassed three fashion watches to snap up a signed brooch without hesitation.
The strength resides in solid precious pieces that have weathered the gold rally. Richemont’s dominance in that segment helped push its stock up a fifth in a single session, a reaction many analysts had anticipated for two quarters.
LVMH, by contrast, still carries a sizable watch and fashion portfolio that offsets the modest gains in its jewel division, which rose 9% organically thanks to Tiffany and Bvlgari.
Swiss export data adds nuance
Swiss watch exports rose 11.2% year over year to CHF 2.391 billion in June, with wristwatches alone up 11.7% to CHF 2.284 billion. This marks the second consecutive month of double‑digit growth, even as LVMH’s watch segment softens.
For the first half, total exports reached CHF 12.8 billion, a modest 0.7% decline from the prior year. The United States led the market with CHF 349 million (up 12.7%), while France’s numbers jumped 103.5% due to base‑effect distortions.
Related Post: Gold Holds $4,470 on Monthly Central Bank Buying
Secondary‑market prices also climbed. Morgan Stanley and WatchCharts noted Patek Philippe values up 19% over the past year, with a retention score of +15.4%. On a quarterly basis, Patek added 3.0%, Audemars Piguet 2.0%, and both Cartier and Omega 1.9%.
Precious metal and diamond trends
Gold slipped below $4,000 per ounce for the first time since last autumn, settling at $4,086.21 by week’s end. The dip offers a modest relief to jewelers, lowering casting costs and easing inventory pressure.
The World Gold Council recorded a record 288.9 tonnes of central‑bank purchases in Q2, a 62% year‑over‑year rise. China’s central bank bought 480,000 troy ounces in June, its largest single‑month haul since October 2023.
Meanwhile, De Beers cut prices on smaller rough stones by up to 50% at its July sight, reflecting a shift toward lab‑grown alternatives that now dominate the low‑end market. Rough sales fell to 7.1 million carats in Q2, while production rose 46% to 14.914 million carats, pushing the realized price down 32% to $105 per carat.
Lab‑grown stones command roughly $770 for a 1‑carat piece, whereas natural counterparts sit between $4,200 and $4,600, illustrating a widening price gap that has reshaped retailer buying patterns.
These movements suggest that while Richemont’s high‑end focus is delivering strong top‑line numbers, LVMH’s broader mix may limit its upside. The luxury sector appears to be consolidating around premium pieces, with mid‑tier fashion items losing momentum.
For observers, the key question is whether Richemont’s momentum can sustain beyond a single quarter, especially as the Swiss export engine continues to post double‑digit gains and gold stabilizes near the $4,000 mark.
