ance is still heavily tied to Chinese purchasing, Richemont’s turnaround in the region offered some much-needed reassurance. Sales in Asia-Pacific rose 10 per cent in the quarter, driven primarily by Greater China’s improvement. Hong Kong and Macau registered the strongest rebound, as Mainland Chinese shoppers, once again visiting the two territories in greater numbers, helped drive growth. In particular, sales in China were up 7 per cent in the second quarter, led by the group’s Jewellery Maisons.  “There is an evolution of consumption in China, connected probably to the economic situation, but also to an evolution in taste, where we see Chinese clients becoming much more demanding, discerning and differentiating when it comes to their choice of brands and connection that affects positively Jewellery Maisons,” Nicolas Bos, CEO of Richemont, said during the earnings call.  “It will be difficult to predict the future, but it seems that we are now at a more stable level of purchasing from our Chinese clients.”  Unlike fashion-led categories, which remain under pressure in China, fine jewellery has proven more resilient as consumers think longer term, valuing investment-grade pieces and timeless lines over seasonality and logos. Meanwhile, South Korea and Australia also posted double-digit growth during the quarter. However, Japan, which contributes 10 per cent of the group’s revenue, ended the first half with sales down 4 per cent, despite strong growth in the second quarter.  A jewellery-led advantage Jewellery remains Richemont’s engine. The category grew 17 per cent in the quarter and 9 per cent in the first half to 7.7 billion euros, following strong momentum earlier in the year. Across Cartier, Van Cleef & Arpels, Buccellati, and the newly integrated Vhernier, demand has remained broad-based and resilient to the volatility affecting other luxury segments. Cartier and Van Cleef & Arpels led the growth, with iconic collections such as Love, Panthère, Santos, Alhambra and Perlée continuing to anchor performance. The Maisons also benefited from well-timed high jewellery events in Europe and Asia, which helped them engage top clients even in a challenging macro environment. Crucially, jewellery’s durability allowed Richemont to absorb the external pressures facing the group, namely soaring gold prices and punishing US tariffs, more effectively than its rivals, which were more exposed to the ready-to-wear sector. The company implemented “balanced and targeted” price increases in the first half of the fiscal year. Yet, executives stressed they were careful not to push consumers beyond what the intrinsic value of the products justified. “Coupled with strong top-line momentum, this allowed the Jewellery Maisons to mitigate the unfavourable impact of external headwinds, resulting in a stable operating margin, at 32.8 per cent,” Alessandra Girolami, group investor relations director, said.  US momentum holds even as tariffs bite  The US, Richemont’s single largest market at roughly 22 per cent of sales, grew strongly through the first half, even as the sector in general saw moderating luxury spending. The Trump administration’s 39 per cent tariff on Swiss-made imports now threatens to impose a full-year hit of around 300 million euros if left unchanged. Richemont executives said the impact was “limited” in the first half thanks to proactive inventory planning, but warned it would worsen in the second half as older stock cycles out. “We anticipate a greater unfavourable impact in the second half, particularly if the tariffs are maintained,” Burkhart Grund, chief financial officer of Richemont, said. According to Reuters, the US and Switzerland have edged closer to a trade deal to reduce the crippling 39 per cent tariffs on Swiss imports. If that materialises, Richemont would enter the next fiscal year with significantly less pressure on profitability. Slowly stabilising  Richemont isn’t the only luxury player signalling improvement. LVMH and Hermès have also reported stabilising growth in recent quarters, and analysts widely believe that the worst of the luxury hangover may have passed. “Looking ahead, it is evident that we will need to continue navigating through uncertain times, given that recovery paths remain unsteady, for instance in China, and that external pressures show no sign of abating,” Johann Rupert, chairman of Richemont, said in a statement. Further reading: How Richemont sidestepped luxury slowdown with growing jewellery sales.