Johann Rupert's Richemont defies tariffs and record gold prices to post double-digit growth

Johann Rupert has guided Richemont through one of the luxury industry's roughest stretches, posting double-digit growth even as record gold prices, trade tensions and softer consumer confidence battered rivals. The South African billionaire, who controls the Swiss group behind Cartier, watched the company outpace much of the sector for the year ended March 31.

Richemont reported revenue of €22.4 billion ($24.2 billion), up 11% at constant exchange rates. The result surprised analysts who expected mounting costs and shaky global demand to drag on the maker of high-end watches and jewelry. Net profit, meanwhile, jumped 27% to €3.5 billion ($3.8 billion) from €2.8 billion ($3 billion) a year earlier.

The jewelry division did the heavy lifting. Sales across Richemont's jewelry houses, which include Cartier and Van Cleef & Arpels, climbed 14% to €16.5 billion ($17.8 billion), powered by resilient demand in the Americas and renewed momentum in China. Wealthy buyers kept spending on premium pieces even as inflation and geopolitical uncertainty squeezed broader retail.

Behind the strong headline, however, pressure mounted. Gold prices surged to historic highs during the year, sharply lifting manufacturing costs for jewelers and watchmakers worldwide. Since gold remains a core material for luxury accessories, Richemont absorbed steeper expenses across several categories, while unfavorable currency swings trimmed the value of its international earnings.

A major boost to profit came from housekeeping. By offloading its loss-making online retailer Yoox Net-a-Porter to Mytheresa, Richemont shed a business that had dragged on earnings for years. That exit, combined with disciplined pricing, helped widen margins despite the cost squeeze.

The numbers reinforce Richemont's standing as one of the world's strongest luxury groups during a turbulent stretch. They also underline the staying power of ultra-wealthy shoppers, who continue to absorb price increases that would deter ordinary consumers.

Therefore, investors will watch closely how Rupert navigates the next phase. Tariff risk, gold market swings and slowing spending in key markets all loom, yet Richemont's latest performance suggests demand at the very top of the market remains hard to shake.