PARIS, France: Richemont, the owner of luxury brands Cartier and Van Cleef & Arpels, posted a stronger-than-expected seven percent rise in quarterly sales, driven by robust demand for jewelry among affluent shoppers.

The Swiss-based luxury group reported total sales of 5.17 billion euros (US$5.80 billion) for the quarter ending in March, surpassing analysts’ forecast of a six percent increase, as cited by HSBC.

Jewellery sales soared 11 percent year-on-year, compensating for an 11 percent decline in the watches division, which has been hit by weaker demand in China amid the ongoing property crisis. The shift towards jewelry, which now accounts for 54 percent of Richemont’s sales compared to 36 percent in 2019, underscores the group’s focus on high-margin, less cyclical products, analysts said.

“Strong jewelry sales were more than enough to offset weakness in watches,” JPMorgan noted, highlighting Richemont’s positioning in the higher-end segment of the luxury market. Richemont shares rose 5 percent in early trading.

Despite the strong performance, Chairman Johann Rupert struck a cautious tone regarding potential U.S. tariffs, which could include a 20 percent charge on European fashion and 31 percent on Swiss watches.

Although President Donald Trump temporarily paused most tariffs for 90 days, Richemont is closely monitoring the situation and will “consider all different options” to mitigate the impact, Rupert said.

The group already implemented price hikes in March, citing exchange rate fluctuations as a key factor. In contrast, rival Hermes is passing on the full amount of potential tariffs to U.S. customers, while LVMH and Kering, which have greater exposure to the broader luxury market, have been more severely impacted, with shares down 20 percent and 25 percent, respectively, this year.

Despite signs of a weakening U.S. economy and ongoing tariff uncertainty, Richemont’s shares have gained 18 percent since January, underscoring its resilience in a challenging luxury market.