PARIS (Reuters) – Cartier proprietor Richemont (SIX:) plans to stay to its cautious strategy to elevating costs of jewelry regardless of the hovering worth of gold in latest months, and has no plans but for worth will increase within the upcoming months, executives mentioned on Friday.
“We’ve been extremely cautious at maintaining the actual activity of our retail pricing on the price of gold,” Richemont chief govt officer Nicolas Bos advised analysts on Friday.
As the luxurious business grapples with a downturn and customers turn into pickier about what they purchase, excessive finish manufacturers have confronted questions on whether or not worth hikes because the pandemic have been pushed too far.
Gold costs have had an affect on buying prices and margins of the group and the corporate, which additionally owns labels Van Cleef & Arpels and Buccellati has over the previous 12 months carried out “a few, but very limited and very targeted” worth will increase in sure nations the place there have been change fee fluctuations.
“We will continue to be cautious,” mentioned Bos.
The manager burdened the Richemont’s efforts to maintain worth variations between areas as little as potential with a view to restrict gross sales to resellers, who buy items in a single area with the intention of promoting them elsewhere.
World geopolitical uncertainty, together with tensions within the Center East, has despatched gold costs hovering.
