Cartier-owner Richemont stock slips as luxury jewelry sales slow Paige Oamek Fri, November 13, 2026 at 10:26 AM EST 2 min read GC=F -0.12% Richemont stock opened more than 4% lower on Friday morning as the Swiss luxury group reported slower growth in its jewelry business.
The owner of Cartier and Van Cleef & Arpels posted first-half net profit of 2.5 billion euros (approximately $2.76 billion), up from 1.8 billion euros ($2 billion) a year earlier and above analyst forecasts of 2.26 billion euros ($2.5 billion).
But eyes were on jewelry, the group's growth engine, where sales rose 14%, short of the 16% analysts had expected, according to an RBC poll.
Many luxury brands have struggled amid foreign conflicts, rising gold prices, and cost-sensitive consumers. The luxury sector has fallen some 30% in 2026, per Barron's.
However, on Friday, the Swiss company's leadership pointed to the strength of the results. "Richemont delivered strong results in a volatile geopolitical and macroeconomic environment," Richemont chairman Johann Rupert said.
The shortfall in jewelry sales largely came from the Middle East, especially the United Arab Emirates market. Second quarter sales in the region fell 7% from 22% growth a year earlier, as geopolitical tensions escalated over the summer.
"Clearly, destinations that were relying on touristic purchases have been hurt the most," CEO Nicolas Bos said on Friday's call, pointing to Dubai's malls. Every other region grew by double digits.
Costs are also a pressure point. Gold prices (GC=F) pushed up production costs, though price increases and a better sales mix largely offset them. Meanwhile, the company's watch division, soft in recent years, grew 12%.
Analysts appeared more forgiving than the market. Quilter Cheviot analyst Mamta Valechha noted that peers have averaged just 1% to 2% organic growth this quarter, making 14% "a relatively strong outperformance." Bernstein called the results "excellent" and said Richemont remains "head and shoulders above" its major rivals.
