Why jewelry takes the crown in today’s luxury market

Now that the luster has worn off in the luxury sector, everything that glitters is gold again. Literally, as luxury giants Richemont, LVMH, and Kering are ramping up their investments in the jewelry category.

Handbags set aside

The luxury sector had been counting on a recovery in 2026 after two years of contraction, but weak fashion sales and the war in the Middle East are once again weighing on consumer spending. Consumers are price-sensitive, and younger buyers in particular are showing less interest in classic bags and shoes. Handbags, however, had been the main profit driver for luxury groups for years.