By Carol Ryan

Cartier may not be the first name you think of for bargains. But the brand is benefiting from a perception that luxury jewelry offers better value for money than handbags.

Richemont, the Geneva-based company that owns the luxury jewelry brand, said group sales rose 13% in the first three months of the year compared to a year ago.

The war with Iran hurt Richemont's business in the Middle East in March, and the impact of the conflict on tourist flows crimped performance in Europe. This was offset by booming demand in Japan and the Americas region, where sales rose 28% and 18% respectively.

Richemont is lucky to be a big player in a corner of the luxury industry that is still growing-jewelry. Sales of brands including Cartier, Van Cleef & Arpels and Buccellati rose 16% in the first three months of the year.

The company didn't hike prices as aggressively as other brands during the pandemic, so has more room to maneuver today. It raised prices by around 6% over its latest financial year and still grew volumes.

That suggests consumers continue to see jewelry as better value for money than other luxury goods. Shoppers can buy a Van Cleef & Arpels gold necklace for $810 or a Cartier Love ring for $1,520. Finding a designer handbag under $2,000 from a major European luxury brand is tougher-although labels like Gucci and Christian Dior are trying to introduce new designs at lower prices.

This means Richemont is still doing healthy business with middle-class consumers. High gold prices may also be boosting perceptions that jewelry will hold its value better than other luxury goods.

At the other end of the income spectrum, a record stock market in the U.S. is driving demand for ultra-exclusive jewelry, where single pieces can retail for hundreds of thousands of dollars.

Richemont is winning market share from its rivals and keeping shoppers interested with new designs. But being prudent when other brands got greedy is paying off today.

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May 22, 2026 07:32 ET (11:32 GMT)

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