Richemont continues to grow – jewelry brands drive the luxury group
The Swiss luxury group Richemont has reported solid growth for the 2025/26 fiscal year. Despite geopolitical uncertainties, rising raw material prices, and adverse currency effects, group revenue rose to 22.4 billion euros—an increase of 11 percent at constant exchange rates.
The Group’s jewelry houses once again posted particularly strong performance. Cartier, Van Cleef & Arpels, Buccellati, and Vhernier collectively generated 16.5 billion euros in revenue, representing 14 percent growth at constant exchange rates. At the same time, the division achieved an operating margin of 30.5 percent.
Jewelry remains a growth driver
The figures underscore a trend that has been emerging in the luxury market for several years: high-end jewelry is proving increasingly resilient compared to many other luxury segments. While fashion is more heavily influenced by trends and economic conditions, jewelry houses benefit from long-term brand loyalty, emotional value, and growing international demand.
Richemont specifically points to the continued strong demand for jewelry and high-end watches in nearly all regions. The Americas, in particular, posted double-digit growth over the course of the year, but Europe, Japan, and the Asia-Pacific region also recorded growth. According to Richemont, even China showed signs of a slight recovery in the second half of the year.
The watch market is slowly stabilizing
The situation in the watch sector is much more nuanced. Richemont’s Specialist Watchmakers—including A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin, and IWC—saw a 4% decline in sales at current exchange rates, but posted slight growth at constant exchange rates.
What is particularly interesting here is the trend in the second half of the year. Richemont reports the first signs of stabilization following a difficult period for the global watch market. Brands such as A. Lange & Söhne, Jaeger-LeCoultre, and Vacheron Constantin, in particular, have recently shown positive momentum again.
Luxury: A Balance Between Exclusivity and Long-Term Brand Management
It is also striking how strongly Richemont continues to focus on craftsmanship, heritage, and controlled distribution. The group explicitly emphasizes long-term investments in savoir-faire, production capacity, and brand identity. At the same time, the share of direct sales continues to grow: 77 percent of the group’s revenue now comes from direct-to-client channels.
In the jewelry sector in particular, a trend is emerging that is currently shaping large parts of the luxury market: customers are increasingly seeking out emotionally resonant products with a strong identity, authentic craftsmanship, and long-term value.
Baume & Mercier Up for Sale
In the watch sector, Richemont also announced the sale of Baume & Mercier to the Italian Damiani Group. Both companies believe that the brand will have better long-term growth prospects within Damiani’s family-run structure. The transaction is expected to close in the summer of 2026.
Solid results despite uncertainty
The Group’s operating profit was 4.5 billion euros, while net profit rose to 3.5 billion euros. At the same time, Richemont remains in a very strong financial position with a net cash position of 8.5 billion euros.
Overall, the figures show that the luxury market continues to evolve: While the watch sector is slowly showing signs of stabilization following a difficult period, high-end jewelry in particular remains one of the key growth drivers within the global luxury industry.
