Riesch edged Vonn by 1/100th of a second to increase her lead over the American in the World Cup overall standings to 196 points.
Both were nearly flawless on the course at Are, which was described by the skiers as fast and technical with lighting conditions that were not particularly helpful.
Riesch finished in 1 minute, 13:24 seconds and Vonn came in at 1:13.25. Julia Mancuso of the United States finished third, marking the third time she and Vonn have shared the podium this season.
"I thought I skied a good race; unfortunately I lost by a hundredth of a second, which is a snap of your finger," said Vonn. "That's life."