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Richemont remains cautious about increasing jewelry prices despite high gold prices

The owner of Cartier, Richemont, intends to remain cautious about increasing jewelry prices despite the surge in the price of gold in recent months, and has not yet planned price increases for the months to come, executives said Friday.

“We have been extremely cautious in maintaining real activity in our retail pricing on the price of gold,” Nicolas Bos, Richemont’s chief executive, told analysts on Friday.

As the luxury industry faces a slowdown and consumers become increasingly picky about what they buy, high-end brands have faced questions about price hikes since the pandemic, which were not pushed too far.

The price of gold has had an impact on the group’s purchasing costs and margins and the company, which also owns the Van Cleef & Arpels and Buccellati brands, has made “some price increases” over the past 12 months. prices, but very limited and very targeted” in certain countries where there have been exchange rate fluctuations.

“We will continue to be cautious,” Bos said.

The executive highlighted Richemont’s efforts to keep price differences between regions as low as possible to limit sales to resellers, who buy goods in one region with the intention of selling them elsewhere.

Global geopolitical uncertainty, including tensions in the Middle East, has caused the price of gold to skyrocket.

Belgium

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