Cartier May Raise Prices 3-5%, CEO Says
Cyrille Vigneron told Bloomberg the brand is considering a price hike in part to cover the higher costs of diamonds, platinum, and gold.
In a recent interview with Bloomberg, Cartier CEO Cyrille Vigneron said the brand might be raising its prices, possibly between 3 and 5 percent, in the coming weeks.
Cartier is considering the “mild” price increase to offset currency fluctuations and cover the higher costs of materials, like diamonds, platinum and gold, he said.
Cartier is under the umbrella of luxury titan Richemont, alongside Van Cleef & Arpels and Buccellati as well as a stable of watch brands including Baume & Mercier, IWC, and Jaeger-LeCoultre.
The brand is a top performer for Richemont, with its “Panthère de Cartier” designs remaining consistently popular with its clientele.
Rising prices have not yet deterred luxury shoppers, with LVMH, Watches of Switzerland, and Brilliant Earth reporting double-digit revenue growth in their most recent results.
“The overall growth of world wealth and the overall distribution is coming in favor of global luxury,” he said.
A possible increase in diamond prices could also factor into pricing decisions, said Vigernon.
Diamond miner Alrosa, the world’s largest diamond producer by volume, has been sanctioned by the United States and other nations following Russia’s invasion of Ukraine.
Last year was a banner year for diamond jewelry sales, and that momentum has continued into this year, so a shortage of supply caused in part by the restrictions placed on Alrosa coupled with strong demand could spell higher diamond prices.
But as Alrosa steps back, other miners could step in, said Vigneron, meaning any potential price increase would be short-lived.
Another top jewelry executive, Signet Jewelers CEO Virginia Drosos, addressed the topic of price increases during an earnings call last month.
Vacations and jewelry often battle it out for consumers’ discretionary dollars, she noted, but since consumers have been willing to spend money on flights priced significantly higher than pre-pandemic rates, the same could be true for jewelry.
Drosos noted that double-digit increases on travel costs would be bigger than any price increases Signet customers might see as a result of the U.S. ban on Russian diamonds.
As for Cartier’s operations in Russia, Vigneron told Bloomberg it has continued to pay its 250 employees in Russia.
Parent company Richemont joined Pandora and other companies in leaving the Responsible Jewellery Council last month, citing the group’s lack of action on Alrosa.
Alrosa later suspended its membership.
“We’re not trying to make a statement per se; we’re trying to uphold the very high standards we’ve been shaping over [the] last 15 years. If RJC cannot uphold [the] highest of standards, then we cannot be part of that. That’s why we stepped down,” Richemont Chief Financial Officer Burkhart Grund said last month.
Richemont is scheduled to announce its quarterly results on May 20.
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