The hardest hit were the traditional categories—leather goods and accessories. Expensive handbags, which had long been one of the main sources of profit for luxury brands, have become less appealing to some shoppers due to high prices and a lack of fresh ideas.
Against this backdrop, the jewelry segment is performing best, Reuters notes. Sales at Richemont, which owns Cartier and Van Cleef & Arpels, rose 24% in the first quarter ending June 30.
LVMH, which owns Bvlgari and Tiffany, also expects growth in its Watches and Jewelry division. Barclays raised its growth forecast for this division in 2026 to 8%, up from 3% a year earlier. In 2025, this division accounted for about 13% of the group’s revenue, which totaled €81 billion.
Interest in jewelry has also increased due to rising gold prices: buyers have begun to view jewelry not only as a luxury item but also as a valuable asset.
This trend is changing the plans of the largest fashion houses. For example, Kering reported that sales at its jewelry division—which includes the Pomellato and Boucheron brands—rose by 22% in the first quarter.
At the same time, companies that have traditionally relied on the handbag business are feeling the pressure. Hermès shares fell by about 10% after its first-quarter results came in weaker than analysts’ expectations. Investors have begun to assess how sustainable the growth model based on the iconic Birkin bags really is.
For luxury companies, this means a shift in priorities. Brands that have relied on handbags and clothing for decades are now seeking new growth opportunities in the jewelry segment.
