Richemont

An Italian union is seeking to hold Richemont legally accountable for alleged workers’ rights violations at a Montblanc supplier, as scandals linking brands like Dior, Armani, Valentino and Loro Piana to sweatshops draw more scrutiny to the sector’s sourcing practices.

The Swiss group’s jewellery division, including Cartier and Van Cleef & Arpels, grew by double digits in the first quarter, while fashion stagnated and watches slumped. Weaker currencies in key export markets and a darkening China market are set to add further pressure to luxury firms this quarter.

The Swiss owner of Cartier, Van Cleef & Arpels and other brands has avoided the luxury slump. Sluggish watch sales and local competition in China threaten to spoil the party.

After three years of declines, prices of pre-owned watches appear to have bottomed out.

Sales in the Swiss group’s all-important jewellery unit soared 11% in the most recent quarter, making Richemont more resilient than rivals like LVMH in a challenging market for luxury goods.

Global fashion houses are reshaping their discount strategies in China, hoping to rebuild exclusivity and attract wealthy consumers amid an economic slowdown that has impacted middle-class spending.

The Trump administration’s radical changes to US trade policy won’t push retail prices up enough to directly dampen sales, but the effects on the global economy and consumer sentiment could seriously dent an industry still struggling to bounce back from a sharp downturn in demand.

CEOs of the Geneva watch fair’s organising foundation, LVMH’s watchmaking division, Piaget and Breitling sound off on the latest edition. Bulgari has entered the fold, but Breitling, Audemars Piguet and Swatch continued to snub the expo.

Cartier owner Richemont has two attributes that make its recent sales performance particularly sparkling, writes Andrea Felsted.

Higher sales in the US and Europe coupled with smaller declines in China offered a tentative sign that demand for luxury goods may be recovering.