Richemont, the Swiss luxury group behind Cartier and Van Cleef & Arpels, exceeded market expectations with a 7% rise in quarterly sales, driven by continued strength in its jewellery division. As global demand for high-end fashion softens, affluent consumers are still investing in fine jewellery—helping Richemont outperform many of its luxury peers.

For the fourth quarter ending in March, jewellery sales surged 11% year-on-year, more than compensating for an 11% decline in the group’s watch division, which has been affected by reduced luxury spending in China amid ongoing economic uncertainty and a slowing property market.

Overall, Richemont reported sales of €5.17 billion ($5.80 billion) for the quarter, a 7% increase in constant currency terms, surpassing the 6% rise forecast in a Visible Alpha consensus cited by HSBC.

According to JPMorgan analysts, Richemont’s strong jewellery performance highlights a strategic shift toward “the higher quality, more profitable and less cyclical part of the business.” This repositioning has helped the company remain resilient during a broader luxury sector slowdown.

Shares of Richemont rose 5% in early trading on Friday in response to the results.

Jewellery now represents the lion’s share of Richemont’s business, accounting for 54% of total sales—up from 36% in 2019—signaling the group’s successful pivot toward this high-margin category. “Richemont continued to gain significant market share in jewellery,” noted Jean-Philippe Bertschy, analyst at Vontobel, who praised the division’s “spectacular growth and profitability,” particularly when compared with luxury rival LVMH, owner of Bulgari and Tiffany & Co.

Still, analysts caution that Richemont is not immune to the global volatility affecting luxury demand, though its core clientele and focus on fine jewellery position it more defensively than brands reliant on fashion sales.