Tiffany Shines Bright as LVMH Feels the Pressure of Soaring Gold Costs

Gems News: Jewelry Sales Dip Amid Market Volatility

Despite economic headwinds and record-high gold prices, Tiffany & Co. continues to sparkle as one of the strongest performers under luxury giant LVMH. The group’s third-quarter results revealed a 3% drop in its watches and jewelry division, with revenue sliding to EUR 2.32 billion (USD 2.7 billion). Over the first nine months of the year, total jewelry and watch sales declined by 2% to EUR 7.41 billion (USD 8.61 billion). However, Tiffany and Bulgari, two of LVMH’s cornerstone brands, bucked the trend with notable sales growth, highlighting the resilience of their high jewelry and iconic collections.

Tiffany’s strength amid LVMH’s challenges highlights the resilience of luxury jewelry even as soaring gold prices tighten margins across the industry.
Image Credit: Tiffany

Rodolphe Ozun, LVMH’s head of investor relations, said Tiffany achieved “double-digit growth from its iconic lines,” supported by record-breaking high jewelry sales and the strong performance of renovated stores. Bulgari, too, continued to shine in the high-end jewelry segment. This Gems News report notes that Tiffany’s revival has been particularly visible in Asia, with China showing strong improvement, though Bulgari’s momentum there remains more gradual.

LVMH Faces Mounting Pressure from Gold and Currency Shifts

While Tiffany’s creative reinvention and store refurbishments continue to pay off, the soaring price of gold and other macroeconomic pressures have created new challenges for LVMH’s profit margins. Gold recently surged past USD 4,000 per ounce—a record level—amid global uncertainty and the anticipation of further U.S. interest rate cuts. Analysts warn that such high commodity prices, coupled with a weaker dollar and new tariffs, are tightening the luxury sector’s margins.

Jon Cox, head of Swiss equities at Kepler Cheuvreux, commented that “each of these factors alone could be offset, but all together, it becomes very difficult.”

Even though luxury jewelry brands such as Tiffany, Bulgari, Cartier, and Van Cleef & Arpels have been outperforming fashion and leather goods counterparts, LVMH’s overall profitability remains under strain. Its fashion division saw profits drop 18%, while watches and jewelry profit fell 13% in the first half of the year. With jewelry representing over 12% of the group’s sales, even small market shifts have large financial implications.

Despite the global economic slump, even Tiffany’s luxury watches are selling well.
Image Credit: Tiffany

Gradual Price Adjustments Ahead

To balance escalating costs, LVMH and other jewelry houses are expected to raise prices carefully. Analysts like Luca Solca of Bernstein believe that even modest price hikes could offset higher gold costs, given that the precious metal represents just 5–10% of luxury jewelry production expenses. However, luxury groups must tread carefully; aggressive price increases risk alienating consumers, especially in markets still recovering from economic slowdowns.

While Tiffany’s performance offers a glimmer of optimism, the broader luxury sector faces an unpredictable path ahead. Economic fluctuations, currency volatility, and raw material costs will test even the strongest brands. Still, Tiffany’s sustained momentum and innovative retail strategies underline the brand’s enduring power within LVMH’s glittering empire. If managed wisely, Tiffany could remain the jewel that stabilizes LVMH through turbulent financial tides and changing consumer dynamics worldwide.

For the latest on Tiffany’s jewelry and LVMH, keep on logging to Gems News.