Morgan Stanley raises Richemont outlook on anticipated price hikes

Published 11/03/2025, 14:04
© Reuters.

Morgan Stanley (NYSE:MS) expressed a bullish stance on Richemont (SIX:CFR), the parent company of luxury brands Cartier and Van Cleef & Arpels. The financial services firm anticipates that these brands, which are projected to constitute the majority of Richemont’s sales and EBIT by the fiscal year ending March 2025, will soon implement price increases.

According to Morgan Stanley’s analysis, Cartier and Van Cleef & Arpels have maintained disciplined pricing strategies since the onset of the pandemic.

The data, gathered in collaboration with Luxurynsight, showcases that the iconic Cartier Love bracelet and Van Cleef Alhambra have seen price increases of 26% and 48%, reaching €7,950 and €4,950 respectively. These adjustments represent a compound annual growth rate (CAGR) of 3% for the Cartier bracelet and 6% for Van Cleef’s Alhambra piece.

The report compares these figures to the heftier price surges experienced by other luxury products over the same period. For instance, Louis Vuitton’s Neverfull and Capucine bags jumped by 52% and 65%, while Dior’s Lady Dior escalated by 76%. Prada (OTC:PRDSY)’s Galleria and Chanel’s 11.12 bag witnessed even more significant increases of 91% and 100%, respectively.

Morgan Stanley’s forecast suggests that the upcoming price adjustments by Cartier and Van Cleef & Arpels are likely to be in the mid-single-digit percentage range. This expectation aligns with the brands’ historical pricing discipline and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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