Richemont’s fourth-quarter performance, full-year revenue dynamics, regional sales variations, the role of Jewellery Maisons, and ongoing macroeconomic pressures form the backbone of this report. Below, we break down how the Swiss luxury giant outperformed expectations amid sector-wide headwinds.
Strong Q4 Sales Boost from Jewelry Division
In the three months ending March 2025, Richemont reported a 7% year-on-year increase in revenue at constant exchange rates, totaling €5.17 billion ($5.79 billion). This result exceeded analyst forecasts of €4.98 billion. The company’s shares responded with a sharp rise of 6.9%, closing at the top of the Stoxx 600 index.
The primary growth driver was the Jewellery Maisons division, which houses iconic brands Cartier, Van Cleef & Arpels, and Buccellati. This unit recorded double-digit growth during the quarter, reflecting continued demand among affluent consumers despite the broader cooling in global luxury spending.
Full-Year Revenue Slightly Ahead of Expectations
Richemont’s full-year sales climbed 4% to €21.4 billion, narrowly exceeding analyst expectations of €21.34 billion. The solid annual performance was again underpinned by the jewelry segment and retail network, partially offsetting weaknesses in other areas.
Specialist Watchmakers Face Regional Weakness
In contrast to jewelry, Richemont’s specialist watchmakers — which include Piaget and Roger Dubuis — saw declining sales, particularly in Asia-Pacific. The slump in that region, led by a sharp 23% drop in Chinese sales, dragged down the performance of the entire segment.
While Japan showed strength with a 25% increase in sales at actual exchange rates, buoyed by strong domestic consumption and inbound tourism, the broader Asia-Pacific area (excluding Japan) failed to deliver. This divergence highlights the uneven recovery across global markets.
Retail and ‘Other’ Segments Add Momentum
Chairman Johann Rupert praised the company’s resilience, pointing to “remarkable growth” in both the Jewellery Maisons and retail segments. He also noted improving momentum in Richemont’s “Other” activities, such as Watchfinder & Co., which specializes in certified pre-owned luxury watches.
Despite this, Rupert acknowledged the persistence of global macroeconomic challenges, cautioning that navigating the months ahead will require “strong agility and discipline.”
External Headwinds and Pricing Strategy
Analysts at BofA Global Research highlighted three persistent threats to Richemont’s outlook: elevated gold prices, U.S. trade tariffs, and currency fluctuations — specifically, the strong Swiss franc and a weak U.S. dollar. These factors continue to challenge luxury retailers heavily exposed to global supply chains and discretionary spending trends.
Nonetheless, Richemont’s pricing power could help cushion the impact. BofA analysts estimate that price adjustments alone could offset around half of the external pressures. Additional buffers include optimized product mix and improved production capacity utilization.
Earlier Highs and Current Uncertainties
In January, Richemont reported its highest-ever quarterly revenue of €6.2 billion. That announcement initially boosted optimism around a broader recovery in the luxury sector. However, concerns over geopolitical instability and renewed fears around trade tensions — particularly U.S. tariffs — have since clouded the outlook.
For now, Richemont’s diversified brand portfolio and loyal high-net-worth clientele continue to provide a buffer. Yet with market volatility persisting, sustaining this momentum will depend on the group’s operational flexibility and ability to adapt to rapidly shifting global dynamics.
