llery maisons, consisting of Buccellati, Cartier, Van Cleef & Arpels and Vhernier, posted an 11 per cent sales increase year-on-year, driven by robust demand across regions and product lines, marking the third consecutive quarter of double-digit growth for the jewellery segment.  While demand for expensive handbags and ready-to-wear slows due to price fatigue, fine jewellery is holding its ground. According to industry analysts, this is due to its perceived timelessness, higher resale value and growing interest from younger, affluent consumers who view jewellery as both self-expression and long-term investment. The luxury safe haven Where consumers are baulking at the escalating cost of leather goods and ready-to-wear, they’ve largely accepted the more measured price increases rolled out by jewellers. Soaring gold prices have reinforced jewellery’s status as a wearable asset. That sentiment is playing out in Richemont’s finances. The company’s jewellery division now accounts for more than 70 per cent of total sales.  Meanwhile, watches are ticking in the wrong direction.  Richemont’s specialist watchmakers, home to brands such as Jaeger-LeCoultre, Vacheron Constantin and IWC, saw a 7 per cent drop in Q1 sales at constant rates. The decline was even steeper when calculated at actual exchange rates. The outlook is further clouded by potential US tariffs. Swiss watch exports, already on a downward trajectory, are on course to hit their lowest levels since the early pandemic years according to Reuters.  Regional dynamics: Asia cools, West rebounds Geographically, Richemont’s performance painted a mixed picture. The Asia-Pacific region, traditionally a growth engine, was flat overall. Sales in Greater China (Mainland China, Hong Kong and Macau) fell 7 per cent due to lingering economic weakness and cautious consumer sentiment. High-end shoppers in China are becoming more selective, and government messaging around frugality continues to cast a shadow over conspicuous consumption. However, double-digit growth in South Korea and Australia helped offset the softness in Greater China.  In Japan, a high base effect and currency shifts weighed heavily. Sales dropped 15 per cent, as a stronger yen curtailed inbound tourism, particularly from Chinese shoppers. Still, local demand remained stable. By contrast, Western markets powered ahead. Sales in the Americas jumped 17 per cent, supported by affluent domestic buyers and an uptick in travel retail. In Europe, revenues rose 11 per cent, driven by tourist flows and successful high-jewellery events. Italy and Germany emerged as standout performers, according to the company.  The Middle East and Africa also posted strong growth, up 17 per cent. The UAE, in particular, benefited from increased demand from high-net-worth individuals, including Russian and Chinese travellers who continue to visit the Gulf region in large numbers. Distribution discipline and a streamlined future One of Richemont’s strategic advantages lies in its control over distribution. Nearly 70 per cent of its sales now come from directly operated retail.  Online sales, while still a small share of the business, also grew 6 per cent.  Its ‘Other’ division, which houses fashion brands like Alaïa, Chloé, and Peter Millar, remains a mixed bag, down 1 per cent overall. But there are glimmers of progress: Peter Millar continues to grow steadily in the US, and Alaïa is benefiting from creative direction that resonates with younger, fashion-literate consumers.