Richemont boosts sales despite global uncertainties

Richemont, the Swiss luxury group known for its prestigious brand Cartier, announced its fiscal fourth-quarter sales results on May 16, 2025. The company's revenues for the three months ending March 31, 2025, rose by 7% year-on-year at constant exchange rates, reaching 5.17 billion euros ($5.79 billion), thus surpassing analyst expectations of 4.98 billion euros. This growth was primarily driven by a significant double-digit increase within the Jewellery Maisons division, which includes Cartier, Van Cleef & Arpels, and Buccellati. However, despite the positive performance in jewelry sales, Richemont faced a decline in the specialist watchmakers segment, which includes brands such as Piaget and Roger Dubuis. This segment’s dip was notably influenced by challenges in the Asia-Pacific market, where the company observed a 23% drop in consumer demand from China. Meanwhile, Japan demonstrated robust growth, with overall sales increasing by 25% thanks to strong domestic spending and an influx of tourists, amplified by a depreciating Japanese Yen. Richemont's overall performance in the fiscal year was commendable, as it recorded a 4% increase in full-year sales, totaling 21.4 billion euros, just ahead of analyst forecasts. Although sales grew across the board in most regions, the Asia-Pacific area (excluding Japan) saw declines, primarily due to the significant drop in the Chinese market, which is crucial for luxury brands. Richemont's chairman, Johann Rupert, addressed these outcomes, acknowledging the remarkable growth in their Jewelry Maisons and retail sectors while emphasizing a need for continued agility and discipline given the prevailing global uncertainties. Market analysts remained cautious about the headwinds affecting Richemont, including fluctuating gold prices, U.S. tariffs, and foreign exchange variations stemming from a strong Swiss Franc coupled with the weakness of the U.S. dollar. BofA Global Research noted that despite these challenges, Richemont's pricing power could help offset some of the impacts, with pricing strategies likely to mitigate half of these pressures. The company is also adapting to shifts within the luxury retail landscape, focusing on enhancing product offerings and optimizing capacity utilization. Richemont had previously set a sales record in January 2025, achieving 6.2 billion euros, suggesting a potential recovery for the broader luxury sector, although the shadow of ongoing trade tensions and economic factors continues to loom over consumer confidence.