Richemont chair Johann Rupert stated the luxurious group would keep away from sudden, sharp costs that might spark a shopper backlash, because it contends with the influence of US tariffs.
Rupert stated that being restrained on worth rises previously 4 years in contrast with some rivals had “benefited” the Swiss luxurious group amid some buyer backlash over the will increase.
He additionally warned towards creating the sorts of worth variations that push purchasers to buy throughout borders, as occurred final 12 months when a weak yen resulted in Chinese language vacationers flocking to purchase luxurious merchandise in Japan at decrease costs.
“We is not going to make sudden speedy worth will increase,” Rupert stated on Friday, including that the corporate would make changes to account for points similar to foreign money volatility. “Clearly we’d like common pricing in any other case individuals journey throughout borders . . . There’s a little bit of a backlash on some worth will increase amongst some opponents.”
Rivals together with Hermes have already stated they may push up costs within the US to offset the influence of tariffs there, whereas analysis from Citi has proven manufacturers together with LVMH’s Louis Vuitton have been growing costs on some merchandise in some areas in April. Richemont’s Van Cleef & Arpels and Cartier have additionally elevated costs on some merchandise.
Many luxurious manufacturers have pushed via substantial worth rises on their merchandise since 2019, with the price on some Chanel and Dior baggage up by excessive double digits in that interval, resulting in criticism from purchasers because the heady days of the pandemic luxurious growth fade. Each Richemont and Hermes, maker of Birkin baggage, have been extra restrained of their worth rises over that interval, in line with analysts.
Enterprise at Richemont’s jewelry homes continued to growth regardless of a tricky financial setting because the Swiss luxurious group reported full-year outcomes on Friday (Might 16), although its watchmaking enterprise got here below strain.
Gross sales in its jewelry division, which incorporates Cartier and Van Cleef & Arpels, rose to €3.7 billion (US$4.14 billion; S$5.37 billion) within the three months to Mar 31, an 11 per cent enhance on the identical interval a 12 months in the past excluding foreign money actions, beating consensus expectations.
Nonetheless, gross sales within the watchmaking operation fell 11 per cent. Group gross sales elevated 7 per cent to €5.2 billion within the quarter, with revenues rising greater than 10 per cent in all areas besides Asia-Pacific, the place they dropped 7 per cent.
Jean-Philippe Bertschy, head of Swiss fairness analysis at Vontobel, stated Cartier was “clearly a standout” model in the meanwhile, not solely in jewelry but additionally by way of the softness in the remainder of the luxurious watch trade.
The financial institution estimated gross sales of Cartier watches have been up 8 per cent for the 2025 monetary 12 months, defying a drop of 13 per cent out there as an entire. “Progress and revenue are spectacular, particularly when evaluating to key competitor LVMH,” he stated of Richemont’s outcomes total.
Richemont reported an annual working revenue of €4.5 billion, down 7 per cent from the earlier 12 months as a slowdown within the watchmaking division contributing to the decline.
Rupert stated he anticipated a restoration within the depressed Chinese language luxurious market however stated US-China commerce tensions meant the timeline for this was unsure.
“The US are utilizing the tariffs in a transactional method, and I do imagine that there are sensible individuals in [the] Treasury within the US that don’t want for complete cessation of world commerce,” stated Rupert.
Adrienne Klasa and Mercedes Ruehl © 2025 The Monetary Instances.
This text initially appeared in The Monetary Instances.
