With a very good cast, a nice blend of wit and sentiment, and many other pluses, this classic remains as enjoyable and charming as ever. The fluffy but pleasant story benefits greatly from the Lubitsch touch, since he had the knack of giving significance to little things without taking them or himself too seriously. Presenting his characters honestly yet sympathetically, he makes the somewhat contrived situation seem believable and worth caring about. Its appeal comes across as almost effortless, but you only have to compare it with the less effective 90's remake to see how important the right touch is with this kind of story.
The atmosphere of life in the Budapest shop is set up efficiently and convincingly, and the cast all settle into their roles seamlessly. As the leads, Jimmy Stewart works perfectly, of course, and Margaret Sullavan conveys the right balance of spunkiness and vulnerability. Felix Bressart is invaluable, giving perhaps the finest performance among his many character roles. In some of his scenes, he barely has to say a word to make you smile. Frank Morgan is surprisingly good in a role rather different than usual for him, Joseph Schildkraut is effectively oily as the deceitful Vadas, and the others all help out, too. Lubitsch gives all of the characters a chance to come to life without pretense, just by using simple details effectively.
It all fits together very well, moves at just the right pace, and makes you a part of the characters' world. It makes for a very enjoyable movie that holds up very well even after several viewings.