Editor’s Note
This article highlights how Richemont’s robust jewelry division has driven a significant profit increase, offsetting challenges in its watch segment and boosting investor confidence.
Thanks to a strong jewelry business, Swiss luxury goods group Richemont has increased its profit by 17 percent in the past fiscal year. While the watch segment is weakening, the jewelry division is shining – Richemont’s stock rose immediately.
High demand for fine jewelry from brands like Cartier, Van Cleef & Arpels, and Buccellati has delivered a surprisingly good annual result for luxury goods manufacturer Richemont. The revenue of the Swiss group, which also offers watches from brands like IWC and A. Lange & Söhne, rose by 4 percent to 21.4 billion euros in the past 2024/25 fiscal year.
The rising sales, together with cost-saving measures and higher prices, helped cushion the impact of higher gold prices, Richemont announced on Friday. Profit jumped by 17 percent to 2.8 billion euros. A tailwind also came from reduced burdens related to the now-divested online retailer Yoox Net-a-Porter. The dividend is to be increased by 9 percent to 3 Swiss francs per share.
The group, based in Bellevue on Lake Geneva, has recently performed better than its French rivals LVMH and Kering. Chairman Johann Rupert (74) hinted that Richemont had been more cautious with price increases than other industry players.
With Cartier, Van Cleef & Arpels, and Buccellati, Richemont is the world market leader in branded jewelry. Thanks to its focus on the top segment with the least price-sensitive customers, Richemont is better equipped for an economic downturn than fashion providers, according to analysts.
On the stock exchange, Richemont shares gained more than 6 percent.
LVMH offers Tiffany and Bulgari.
Richemont further announced that it had continued to gain significant market share in the jewelry business. While revenue in the jewelry division climbed by 8 percent, it fell by 13 percent in the watch segment. The smaller watch segment is particularly suffering from the slump in the Chinese market, where the real estate crisis has dampened customers’ appetite for luxury purchases.
The luxury goods groups had started 2025 hoping that robust demand in the USA would pull the sector out of its biggest slump in years. However, from mid-February, there were signs of a weakening US economy, and in April, the tariff announcements by US President Donald Trump (78) created further uncertainty. Richemont now stated that it is closely monitoring the further development of the tariff discussion and examining various options, including price increases.