Richemont reports better half-year results than expected

Luxury goods group Richemont has proven resilient to customs disputes and a weakening business in China, increasing its sales in the first half of the fiscal year 2025/26 (ending September) by 10 percent to €10.6 billion on a currency-adjusted basis compared to the same period of the previous year.

Following a 6 percent increase in the first quarter, Richemont's revenue growth accelerated by 14 percent in the second quarter. Operating profit rose by 7 percent (currency-adjusted) to nearly €2.4 billion. Net profit for the period increased to €1.8 billion.

With the exception of Japan (-4 %), all regions recorded currency-adjusted growth in the first half of fiscal year 2025/2026: Europe (+11 %), Asia Pacific (+5 %), Americas (+18 %), Middle East & Africa (+19 %).

The Geneva-based company thus significantly exceeded analysts' expectations.

Jewelry grows, watches lose value.

The jewelry segment performed particularly well, with a currency-adjusted increase of 14 percent in the first two quarters of the current fiscal year. The watch business, however, resulted in a 2 percent decline in sales for the group. A slight recovery appears to be on the horizon, though. After a decline in the first quarter, Richemont's watch sales increased by 3 percent in the second quarter.

Richemont comments:

„"Although the second quarter showed encouraging signs with a 2 percent decline in sales (+3 % at constant exchange rates), the market environment remained volatile, particularly due to the US tariffs on Swiss products that have been in effect since August. Regional performance continued to be uneven. In the Americas, sales increased by double digits in both the first and second quarters, while in the Asia-Pacific region they declined due to persistently weak demand in China, despite a noticeable improvement in the second quarter. Due to unfavorable currency developments, higher gold prices, and additional US tariffs, operating profit amounted to €50 million (2024: €150 million), corresponding to an operating margin of 3.2 % (2024: 9.7 %)."“

richemont.com