Cartier owner Richemont’s sales failed to budge in the first quarter of its 2025 financial year, delivering another warning sign for the global luxury sector.
On an actualised basis, the Swiss global luxury giant’s revenues slipped by 1%, down significantly from the 14% growth rate in the previous first quarter.
Despite sales surging over 40% in Japan and an 11% bounce in the Americas, it was not enough to offset the 27% decline in China demand.
China’s declining interest in luxury goods has hammered the sector in recent months, leading to a pessimistic outlook for Richemont and its contemporaries including LVMH and Gucci owner Kering.
On Monday, Hugo Boss issued a profit warning after group-wide sales fell 1% in the second quarter.
Hugo Boss cited “particularly challenging” trading conditions in the UK and China and “persistent macroeconomic and geopolitical challenges that are dampening global consumer demand”.
British luxury fashion label Burberry Group PLC (LSE:BRBY) is facing similar pressures.
At the more affordable end of the discretionary goods spectrum, Swatch blamed poor China sales for the jewellery and watchmaker’s 14% first-half sales decline.
Markets have responded to the headwinds by repricing luxury stocks across the board.
Frankfurt-listed Hugo Boss plummeted to a three-year low this week, while Burberry suffered a 16% collapse on Monday.
Kering is currently down more than 20% year to date, while Richemont has performed surprisingly well, adding 20% year to date.