Jewelry and fashion drive Richemont’s growth. Alaïa’s leather goods, Peter Millar’s solid performance, and Chloé’s “encouraging performance” are bright spots in the Swiss giant’s annual report. The problem is that the operating result of the fashion brands’ division is negative. Richemont’s chairman Johann Rupert said he wants to avoid sharp price increases because of tariffs.
The trend
In the annual fiscal year ending in March, Richemont reported a 4& increase in revenue to 21.4 billion euro, pushed by an 8% increase in sales in the fourth quarter from January to March 2025 (+7% at constant exchange rates). And while jewelry grew 8% year-on-year, the “Other” division, which brings together fashion brands, recorded a 7% increase in sales to 2.788 billion euros, thanks to faster growth in the second half of the year. In the fourth quarter alone (January-March 2025), the increment amounted to +7% at constant exchange rates and +9% at actual exchange rates. The Other division’s overall operating income deteriorated from -€43 million to -€102 million (-3.7%) due, the Swiss giant says, to “inventory provisions”.
Profit
Richemont’s profit for the year increased from 2.355 billion euros to 2.75 billion euros. Despite a 1.01 billion euro loss caused by the sale of Yoox Net-a-Porter to Mytheresa earlier this year.
The chairman’s statement
In the conference call with analysts regarding duties, Richemont’s Chairman, Johann Rupert, said that the luxury group wants to avoid applying sudden and abrupt price increases that could trigger a reaction from consumers. Rupert said that the containment of such increments over the past four years, compared to some competitors, has “benefited” Richemont. “We’re not going to make sudden, rapid price tag increases”, Rupert said, adding that the company will make adjustments to account for currency volatility. “Obviously we need universal pricing, otherwise people will travel across borders…. There is some backlash on some price increases from some competitors”, the Richemont chairman concluded, reports Financial Times.
Photo Chloé and Al
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