Cartier and Van Cleef & Arpels fueled double-digit growth for the luxury company as hard luxury outshone soft goods in 2025.

Richemont’s jewelry sales growth accelerated in the three months ended September 30, as global demand for Cartier watches and Van Cleef & Arpels necklaces held up despite what the company called “unprecedented headwinds.” Jewelry is proving to be one of the most resilient luxury categories, largely due to its durability. It goes out of fashion more slowly than most apparel and leather goods, and retains its value better, especially with gold prices soaring. Jewelry will be the fastest-growing personal luxury category in the US this year, according to our forecast, thanks to its stronger value proposition and the resilience of wealthy shoppers.

The news: Cartier owner Richemont beat sales expectations for the quarter ended June 30, as wealthy shoppers weary of price hikes on designer handbags and apparel opted to spend their money on jewelry instead. Our take: Shoppers’ move away from products like Chanel handbags—seen by many as overpriced—and toward items like Cartier Love bracelets that are expected to better hold their value reflects the (partly self-inflicted) challenges luxury brands now face.

LVMH beat analysts’ middling expectations in Q4: But the company’s 1% growth suggests the luxury sector may take some time to bounce back.

Economic uncertainty caused investors to grow cautious: Even so, there were several significant acquisitions in 2022.

The personal luxury goods sector is riding a wave of high demand in the US and China, buoyed by wealthier consumers who are relatively immune to the impact of price increases. But brands will need to appeal to the rising Gen Z consumer, as well as strengthen loyalty among their most important customers.

For years, luxury brands around the world have been slow to adopt digital. But the pandemic has sped up the process, forcing many to pivot and innovate during a time when a large number of transactions are happening digitally.