Yen weak point subdues Japan luxurious splurge at Cartier-owner Richemont

A currency-fueled spending splurge in the important thing Japanese luxurious market has lastly abated, weighing on gross sales at Cartier-owner Richemont.

The Swiss luxurious group’s Japan gross sales declined 15% year-on-year at fixed alternate charges within the fiscal first quarter, it mentioned Wednesday in its fiscal first-quarter gross sales report.

Revenues on the Swiss luxurious group nonetheless rose 6% year-on-year at fixed alternate charges to five.41 billion euros ($6.28 billion) within the three months to the top of June, barely forward of the 5.37 billion euros forecast by analysts in an LSEG ballot.

Shares of the agency closed up 1.2%.

The decline in Japan gross sales follows a 59% bounce in revenues in the identical quarter final yr, as a weaker yen sparked a surge in worldwide tourism and luxurious spend.

The Japanese yen started steadily depreciating final yr after the Financial institution of Japan introduced an finish to unfavourable rates of interest and terminated its yield curve management coverage in March. In June of that yr, the Japanese forex weakened to 38-year lows, crossing the 161 mark towards the greenback.

Richemont, whose manufacturers additionally embody Van Cleef & Arpels and Buccellati, benefitted from that weak point all through final yr, reporting 20% to 25% gross sales progress in Japan over consecutive quarters.

It was not alone. Different main luxurious teams LVMH, Kering and Burberry all famous the uptick, led particularly by Chinese language consumers flocking to the East Asian nation.

Nevertheless, a latest strengthening of the yen within the first half of 2025 has put paid to these traits.

“In Japan, gross sales declined by 15% towards a demanding +59% comparative within the prior-year interval, with a strengthening Yen strongly lowering vacationer spend, most notably from Chinese language clientele, while native demand remained constructive,” Richemont mentioned in an announcement accompanying the Wednesday outcomes.

Richemont has nonetheless emerged a uncommon outlier in a wider luxurious downturn, as demand amongst rich consumers for its high-end jewellery continues to shine.

Gross sales on the group’s Jewelry Maisons division as soon as once more led the cost within the newest report, rising 11% at fixed alternate charges.

Revenues inside its Specialist Watchmakers division, which options Piaget and Roger Dubuis, in the meantime continued to lag, declining 7% over the interval.

The group mentioned the weak point largely mirrored declining gross sales in China, Hong Kong, Macau and Japan, whilst gross sales within the Americas rose.