South African billionaire Johann Rupert’s Richemont records sales growth amid tariff crisis, high gold prices

Luxury goods giant Richemont, controlled by South African billionaire Johann Rupert, posted sales growth despite mounting pressure from global trade tensions, weakening consumer demand, and surging gold prices that continue to weigh on the luxury jewellery sector.

The Cartier owner reported resilient performance across key markets, underscoring the strength of high-end demand even as tariff uncertainties and elevated raw material costs squeeze margins across the broader luxury industry.

Rising gold prices, in particular, have increased production costs for jewellery makers, while shifting trade policies and slowing global growth have created fresh challenges for international luxury brands.

Despite facing heavy global economic challenges, the company managed to grow its total revenue to €22.4 billion, which is an 11% increase at constant exchange rates.

This growth was primarily driven by resilient consumer spending in the Americas alongside steady sales improvements in China. Richemont’s core jewelry houses, including Cartier and Van Cleef & Arpels, performed exceptionally well, recording a 14% increase in sales.

However, the Swiss-based luxury giant is facing pressure on its profit margins due to rising expenses. The price of gold, which is essential for manufacturing high-end jewelry and watches, has climbed to historic highs, significantly increasing production costs.

Additionally, unfavorable shifts in global currency values have made it more difficult for the company to convert international revenue into net profits.

Trade issues with the United States have added another layer of operational difficulty. Richemont has absorbed approximately €300 million in extra costs due to heavy US import duties on Swiss goods, forcing executives to adjust their inventory and shipping strategies.

Chairman Johann Rupert noted that the company is currently evaluating whether it can claim refunds for these taxes following a recent US Supreme Court ruling.

Despite these challenges, Richemont’s total net profit rose by 27% to reach €3.5 billion. A major factor in this financial improvement was the company cleaning its balance sheet by selling its struggling online retail division, Yoox Net-a-Porter (YNAP), to MyTheresa.

Exiting that unprofitable business eliminated the heavy financial losses that had reduced the group’s total earnings the previous year.