Richemont's Cautious Pricing Strategy

PARIS (Reuters) – Cartier owner Richemont (SIX:CFR) plans to maintain a cautious approach to raising jewellery prices despite rising gold prices. Executives announced there are no immediate plans for price increases.

Nicolas Bos, Richemont's CEO, emphasized the company's cautious strategy regarding retail pricing relative to gold prices during a call with analysts on Friday.

As the luxury industry faces a downturn and consumers become more selective, high-end brands are reassessing previous price hikes implemented since the pandemic.

While gold prices have affected purchasing costs and margins, Richemont, which also owns Van Cleef & Arpels and Buccellati, has made limited and targeted price increases in specific countries due to exchange rate fluctuations.

"We will continue to be cautious," said Bos, who noted efforts to minimize price differences across regions to deter reselling activities.

Gold prices have surged amid global geopolitical uncertainty, particularly in the Middle East.