A currency-fueled spending splurge in the important thing Japanese luxurious market has lastly abated, weighing on gross sales at Cartier-owner Richemont.

The Swiss luxurious group’s Japan gross sales declined 15% year-on-year at fixed trade charges within the fiscal first quarter, it mentioned Wednesday in its fiscal first-quarter gross sales report.

It follows a 59% soar in revenues in the identical quarter final yr, as a weaker yen sparked a surge in worldwide tourism and luxurious spend.

Shares had been up 0.6% by 8:35 a.m. London time.

The Japanese yen started steadily depreciating final yr after the Financial institution of Japan introduced an finish to destructive rates of interest and terminated its yield curve management coverage in March. In June of that yr, the Japanese forex weakened to 38-year lows, crossing the 161 mark in opposition to the greenback.

Richemont, whose manufacturers additionally embrace Van Cleef & Arpels and Buccellati, benefitted from that weak spot all through final yr, reporting 20% to 25% gross sales progress in Japan over consecutive quarters.

It was not alone. Different main luxurious teams LVMH, Kering and Burberry all famous the uptick, led particularly by Chinese language customers flocking to the East Asian nation.

Nevertheless, a latest strengthening of the yen within the first half of 2025 has put paid to these traits.

“In Japan, sales declined by 15% against a demanding +59% comparative in the prior-year period, with a strengthening Yen strongly reducing tourist spend, most notably from Chinese clientele, whilst local demand remained positive,” Richemont mentioned in a press release accompanying the Wednesday outcomes.

Richemont nonetheless has emerged a uncommon outlier in a wider luxurious downturn, as demand amongst rich customers for its high-end jewellery continues to shine.

Revenues on the Swiss luxurious group rose 6% year-on-year at fixed trade charges to five.41 billion euros ($6.28 billion) within the three months to the top of June, barely forward of the 5.37 billion euros forecast by analysts in an LSEG ballot.

Gross sales on the group’s Jewelry Maisons division continued to guide the cost, rising 11% at fixed trade charges.

Revenues inside it Specialist Watchmakers division, which options Piaget and Roger Dubuis, nonetheless continued to lag, declining 7% over the interval.

The group mentioned the weak spot largely mirrored declining gross sales in China, Hong Kong, Macau and Japan, at the same time as gross sales within the Americas rose.