Good news for Johann Rupert’s biggest company

Richemont posted a rise in full-year sales as the continued popularity of its Cartier brand allowed the Swiss group to be more resilient than rivals like LVMH in a softening luxury-goods market.

Richemont was founded by South Africa’s richest man, Johann Rupert, as a spin-off of the international brands owned by Rembrandt, now known as Remgro.

Rupert chairs the Swiss-based group and is the sole holder of the group’s B shares, giving him substantial control of the company.

Despite making up less than 10% of the group’s capital structure, the B shares have 50% of the voting rights at meetings of shareholders.

Sales in the year ended March at Richemont’s jewellery unit, which also include Van Cleef & Arpels, rose 8% at constant exchange rates, the company said in a statement Friday. Analysts were expecting a gain of 7.54%. Group sales overall were also in line.

Richemont has managed to withstand the downturn in demand for high-end goods better than peers as jewellery, its biggest category, enjoys an enduring appeal with consumers even in times of uncertainty.

French rival LVMH Moët Hennessy Louis Vuitton SE, which owns jewellery labels such as Bulgari and Tiffany, reported disappointing results in its most recent quarter amid weak demand for its Christian Dior bags.

The luxury market has been struggling to emerge from a period of sluggish growth caused in part by Chinese shoppers reining in costly purchases.

The industry’s outlook has grown even gloomier since US President Donald Trump last month began to impose tariffs on imports across industries and countries.

Richemont reported operating profit for the year of €4.47 billion ($90 billion), below the €4.55 billion (R92 billion) estimated by analysts.

“This sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on our profitability,” Richemont said in the statement.

Richemont increased prices recently at its Cartier and Van Cleef & Arpels brands following Trump’s tariff hikes, according to Jefferies. In the most recent quarter, the company’s jewellery unit saw double-digit growth rates.

Shares of Richemont have gained about 15% so far this year compared to a drop of about 17% at LVMH.