The miner behind the iconic Fabergé brand, Gemfields sold the jeweller to SMG Capital, an investment firm led by tech entrepreneur Sergei Mosunov, for US$50 million. Of the total amount, US$ 45 million is payable on completion until the end of the month, with the remaining delivered as quarterly royalties equal to 8% of Fabergé’s future revenue. Listed in London, the holding has owned the brand for more than 12 years.
Fabergé, renowned for its jewel eggs created for the Russian imperial family, has seen declining financial performance in recent years. Sales fell to US$ 13.4 million in 2024, down from US$ 15.7 million in the prior year . Faced with a challenging luxury market and underperformance in lower price categories, Gemfields opted to refocus its capital and efforts on core operations.
The resources will be directed toward Gemfields’ mining business, particularly the Montepuez ruby operation in Mozambique and the Kagem emerald mine in Zambia, according to the company. Analysts view the deal as a strategic step, freeing up working capital and strengthening the balance sheet at a time when liquidity is critical. The company also recently completed a rights issue to raise approximately US$ 30 million also to this end.
Not that chic
For Gemfields, the deal means more time and resources for the core business. But the sale also reflects the trends in the luxury sector. According to Bain&Co, personal luxury goods are facing their deepest slowdown since the 2008 financial crisis, with global sales slipping around 1% in 2024.
The consultancy estimates further declines between 2-5% for the full year of 2025. Among the main reasons, the firm mentions weakening sentiment, especially among Gen Z, and an eroded price-to-value balance after years of hikes outpacing perceived quality gains, as well as economic uncertainty.
Other audit firms note the trend. McKinsey notes that growth driven by price hikes is giving way to a need for brands to reconnect with clients and reinforce authenticity to maintain relevance in an increasingly competitive market. Their State of Fashion: Luxury report also points to the limits of price-led growth, which drove over 80% of luxury expansion from 2019 to 2023—not very chic.
