Richemont chairman Johann Rupert said the Swiss luxury group would avoid sharp and sudden price hikes, aiming to prevent backlash from customers as the company navigates the impact of U.S. tariffs.
Speaking on Friday, Rupert explained that Richemont’s decision to raise prices more cautiously than some competitors over the past four years had worked in its favor. “We will not make sudden rapid price increases,” he said, stressing the importance of avoiding large regional pricing gaps that could encourage cross-border shopping.
He cited last year’s example, when a weak Japanese yen led many Chinese tourists to shop for luxury goods in Japan, where prices were lower. Rupert said Richemont would make pricing adjustments for factors like currency fluctuations but would maintain a global pricing strategy to discourage such disparities. “There is a bit of a backlash on some price increases among some competitors,” he noted.
While Richemont remains cautious, rivals are taking a different approach. Hermes has already announced price increases in the U.S. to counter tariffs. Research by Citi shows that brands such as Louis Vuitton, owned by LVMH, also raised prices in certain regions in April. Richemont’s own brands, Cartier and Van Cleef & Arpels, have also raised prices on some products, but to a lesser extent.
Since 2019, many luxury brands have significantly raised their prices, with some Chanel and Dior bags seeing increases in the double digits. This has drawn criticism as the strong post-pandemic demand for luxury goods begins to slow. Analysts say that both Richemont and Hermes have been more restrained in their pricing strategies during this period.
Despite economic challenges, Richemont’s jewelry business remains strong. On Friday, the group reported its full-year results, showing robust growth in its jewelry division. Sales at Cartier and Van Cleef & Arpels rose 11 percent to €3.7 billion (US$4.14 billion) in the three months ending March 31, beating analyst expectations. However, sales in the company’s watchmaking division declined by 11 percent.
Overall, Richemont’s group sales rose 7 percent to €5.2 billion in the quarter. Revenues grew more than 10 percent across all regions except Asia-Pacific, where they fell 7 percent.
Jean-Philippe Bertschy, head of Swiss equity research at Vontobel, called Cartier a standout brand, not only in jewelry but also within a struggling watch industry. He estimated Cartier watch sales rose 8 percent in the 2025 financial year, even as the wider market declined by 13 percent. “Growth and profit are spectacular, especially when comparing to key competitor LVMH,” he said.
Richemont posted an annual operating profit of €4.5 billion, a 7 percent decrease from the previous year, mainly due to weaker performance in its watch business.
Looking ahead, Rupert expressed hope for a recovery in China’s luxury market but said the timing remains uncertain due to ongoing U.S.-China trade tensions. “The U.S. is using the tariffs in a transactional manner,” he said. “I do believe there are wise people in the U.S. Treasury who do not want to see a complete breakdown in global trade.”
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