Richemont, the Geneva-based owner of Cartier and Van Cleef & Arpels, reported higher first-half sales on Friday. Booming demand for high-end jewellery more than offset a continued slump at its specialist watchmakers. The group said revenue for the six months to the end of September rose at constant exchange rates to more than €10bn, beating analyst forecasts compiled by the company.

The jewellery division, which accounts for roughly 70 per cent of group sales, again delivered double-digit growth at constant currencies, Richemont said. The company credited strong sales of signature collections such as Cartier's Love and Van Cleef & Arpels' Alhambra. Retail sales through its own boutiques grew faster than wholesale, a trend the group has pursued to protect pricing and margins.

The specialist watchmakers division, which includes IWC, Jaeger-LeCoultre and Vacheron Constantin, posted another decline in sales, Richemont said. The group cited soft demand in mainland China and Hong Kong and the lingering effect of US tariffs on Swiss-made goods. Richemont said record gold prices had pushed up input costs, though repeated price increases had largely protected jewellery margins.

Reported operating profit was held back by the strength of the Swiss franc and the euro against the dollar and Asian currencies, the company said. Sales in the Americas and Europe grew strongly, helped by spending from wealthy local and travelling customers. Japan also contributed to growth, while Asia Pacific as a whole remained weaker than other regions.

The results reinforced Richemont's position as one of the strongest performers in a luxury sector that has struggled since the post-pandemic boom faded. Rivals including LVMH and Kering have reported uneven demand in recent quarters, with fashion and leather goods proving weaker than hard luxury. Analysts at Vontobel and Bernstein have argued that branded jewellery is benefiting from wealthy buyers favouring durable pieces that hold their value.