Luxury groups are experiencing a boost in jewellery sales, which is helping to shape the industry’s winners and losers. Despite weak fashion sales and a hit to spending from the Middle East conflict, investors are focused on jewellery sales.
Luxury Goods Sector
The luxury goods sector was expected to return to growth in 2026 after contracting for two consecutive years. However, the conflict has curtailed spending, and the impact is set to be greater in the three months to June, according to industry analysts.
Leather bags, a traditional driver of profitability, are not offering enough support due to being viewed as too pricey and unattractive to younger consumers. In contrast, jewellery is doing better, with sales at Cartier and Van Cleef & Arpels owner Richemont soaring by 24% in the quarter to June 30.
Jewellery Sales Growth
LVMH, owner of Bulgari and Tiffany, is also expected to improve its hard luxury sales. Barclays analysts raised growth expectations for its Watches and Jewellery division from 7% to 8% for 2026, well above the 3% growth it posted last year.
Smaller labels are also doing well, prompting renewed interest by traditional fashion-focused players. Kering, owner of Pomellato and Boucheron, saw sales of its new jewellery division grow 22% on a comparable basis in the first quarter, outperforming all other segments.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
