LONDON — Don’t rip off your customers, build long-term value and never underestimate Chinese ingenuity was just some of the advice that Richemont founder and chairman Johann Rupert offered as the luxury giant unveiled a 4 percent uptick in full-year sales to 21.4 billion euros, powered by double-digit gains in jewelry.

In addition to detailing the year’s performance, where sales in Richemont’s key watch division fell 13 percent due to lackluster demand in Asia-Pacific, Rupert offered his thoughts on U.S. President Donald Trump’s tariff strategy, and the future of China, following the fiscal 2025 results presentation.

“China is going to come back, but when — I am not sure. The Chinese have been saving for a while, but I think they experienced a cultural shock during lockdown, and there are still scars, especially in some of the major cities. The people have a lot of savings, and it’s only a matter of time before they feel relaxed enough to spend again,” said Rupert, as he touted the country’s ingenuity — and manufacturing muscle.

Rupert described the recent motor show, Auto Shanghai, as “astonishing,” due to all of the locally made electric vehicles. Five years ago, China was importing most of its cars; now it’s making them locally.

“When you see dramatic shifts like that, you know the power of China. It is unstoppable and will continue to grow,” said Rupert, adding that Richemont has been lucky so far because the Chinese haven’t entered the luxury goods arena in a “meaningful” way.

“We still have relevance as luxury goods manufacturers there, and a very high reputation that we built up over the years. I expect that when the consumers get a little bit more confident, things will return to normal,” he said.

Despite that brand equity, China failed to deliver for Richemont in the fiscal year ended March 31.

The Asia-Pacific region was down 13 percent, with a 23 percent decline in China, Hong Kong and Macao. Asia-Pacific now represents 33 percent of sales compared with 40 percent in the previous period.

By contrast, the Americas saw a 16 percent uptick in full-year sales, and now represents 25 percent of Richemont’s revenue. In fiscal 2025, sales came from all business channels and areas with growth accelerating in the second half.

Looking ahead, Rupert said he’s concerned about the potential impact of U.S. tariffs, but he also understands what Trump is trying to do.

“I believe the United States are using the tariffs in a transactional manner, and I do believe there are wise people in the Treasury of the United States who do not wish to have a total cessation of world trade,” he said.

Rupert added: “There are imbalances that need to be addressed. The United States cannot carry on blowing up its debt which stands at nearly $37 trillion, and so President Trump is doing things that need to be done to address the overall situation.”

Richemont, which produces all of its watches and some of its jewelry in Switzerland, is holding its nerve on any substantial price increases until it sees where tariffs land.

Rupert said he is loath to raise prices drastically — anywhere — for fear of damaging the relationship with the local customer.   

“We were not greedy in the post-COVID boom period. And I think our resilient results today prove that we have not suffered the revenge of our clients. We will obviously monitor the various trade restrictions, but our goal is to continuously keep the value relationship for our clients,” Rupert said.

Richemont raised prices slightly at Cartier and Van Cleef & Arpels earlier this year. Rupert said that if Richemont hikes them too much, it risks “discriminating against” its loyal local clients.

“We have to be sensitive to the loyal local clients,” said Rupert, taking a swipe at his luxury competitors who have jacked up prices since lockdown lifted.

“When people double the prices of the handbags, there’s a backlash,” from customers, he said, adding, “We will not make sudden, rapid increases, although we will adjust prices,” to align with currency fluctuations and market movements.

During the call Rupert said he’s proud that Cartier and Van Cleef & Arpels jewels retain their value at auction, and urged his audience to make a visit to the Cartier exhibition at the Victoria & Albert Museum. “If you walk through there, you really understand the power of Cartier. It’s an emotional experience,” he said.

Following the results announcement Luca Solca of Bernstein wrote that the “appeal of Richemont’s main jewery brands, Cartier and Van Cleef & Arpels, remains clear and untarnished by the aggressive post-pandemic price increases implemented by other luxury brands. This has allowed it to deliver another quarter of growth significantly above the industry average.”

Richemont’s jewelry sales grew 11 percent in the fourth quarter, compared with 9 percent consensus estimates and 8 percent growth in the full fiscal year. In the year, all regions grew in the double-digits with the exception of Asia-Pacific.

Richemont said that direct-to-client transactions accounted for 84 percent of total jewelry sales. Retail-wise, there were major reopenings at Dubai Mall and South Coast Plaza for Cartier, a new boutique for Van Cleef & Arpels on Madison Avenue, and a new Buccellati flagship in Riyadh.

Buccellati has outstripped expectations, said Rupert. The Italian brand, which Richemont purchased in 2019, became profitable three years earlier than projected thanks partly to a flourishing homeware offer. Rupert said Richemont has been working closely with the founding family, describing them as a “fantastic asset” to the business.

He also addressed the future of Yoox Net-a-porter under its new owner Mytheresa. In fiscal 2025 YNAP saw sales decline 13 percent, and Rupert is confident that it will return to health under the new owners.

As reported, Mytheresa  purchased 100 percent of YNAP from Richemont, which has now become a shareholder of the parent company, LuxExperience, holding a 33 percent stake. Richemont sold YNAP with a net cash position of 555 million euros, and no financial debt.

Rupert said he still believes “there’s a business in online, but maybe it’s got to be changed to a subscription model. But that’s for them to run, and [Michael  Kliger] is a very good CEO.”

With overall sales of 21.4 billion euros in fiscal 2025, Richemont is now one of the largest buyers of gold in the world, and “competing with governments to buy gold,” said Rupert.

He added that overall sales performance in the full year accelerated in the second half, with a 10 percent rise in the third quarter followed by an 8 percent uptick in the fourth quarter.

Richemont’s “other” division, which comprises the fashion brands, the Watchfinder business and the watch components group, saw sales climb 7 percent to 2.79 billion euros.

Rupert said that Alaïa delivered strong growth, as did Peter Millar. Ready-to-wear sales rose in the double-digits, with “an encouraging performance” from Chloé, he added.

Full-year operating profit fell 7 percent to 4.47 billion euros, dragged down by the specialist watch brands, while profit from continuing operations fell 1 percent to 3.76 billiion euros. Richemont posted a loss of 1.01 billion euros from discontinued operations due to Yoox Net-a-porter.

Richemont shares closed up 7 percent at 165.7 Swiss francs on Friday.