Richemont Posts Net Profit of €2.528 Billion in First Half of Financial Year
Key Facts
Richemont reported profit for the period of €2.528 billion in the six months ended September 30, 2026, up 39% year on year. Diluted earnings per share rose to €4.29 from €3.08 in the corresponding period. The group recorded sales of €12.282 billion, up 16% at actual exchange rates and 17% at constant exchange rates. Results were driven by continued sales growth at the Jewellery Maisons, while sales at the Specialist Watchmakers expanded at a slower pace. But second-quarter sales growth slowed compared with the first quarter, and Richemont noted that the economic and geopolitical environment remained volatile.
Second-quarter sales rose 13% at constant exchange rates, compared with 20% growth in the first quarter, and exceeded growth of 14% in the corresponding period. The company said second-quarter growth was achieved against a high year-on-year comparison base. Strong first-half sales helped lift operating profit 33% to €3.129 billion. However, that figure included a positive contribution of €229 million from one-off items related to customs duties. Operating profit was €2.9 billion excluding that contribution, showing the effect of exceptional items on the reported result.
The operating margin was 25.5%, compared with 22.2% in the corresponding period, an increase of 330 basis points. Excluding the positive contribution from one-off items, the margin was 23.6%, up 140 basis points year on year. In contrast, higher production costs, particularly raw material and gold prices, weighed on gross margin. Richemont said price increases and a positive sales mix offset most of these costs. But gross margin fell 70 basis points excluding the effect of items related to customs duties, which added the equivalent of 190 basis points to it.
The Jewellery Maisons were the biggest growth driver, with sales up 18% at actual exchange rates and 19% at constant exchange rates in the first half. The division’s sales growth at constant exchange rates was 14% in the second quarter. The group attributed the performance to strong demand for its iconic collections and new products. The division includes Boucheron, Cartier, Van Cleef & Arpels and Vhernier. Sales at the Specialist Watchmakers also rose to €1.7 billion, up 9% at actual exchange rates and 10% at constant exchange rates in the first half. Their sales growth at constant exchange rates reached 12% in the second quarter, while the chairman said the recovery was "unlikely to be linear."
By sales channel, retail accounted for 72% of the group’s total sales, rising 20% at constant exchange rates. Online sales also rose 17%, and the share of direct-to-customer sales increased to 78% of total sales, from 76% a year earlier. Regionally, sales in the Middle East and Africa fell 2% at actual and constant exchange rates. The company said local demand remained resilient, but tourist spending was materially affected by the conflict in the region, particularly in the UAE. In mainland China, the chief executive described business as relatively weak but stable, while positive trends in Hong Kong and Macau offset that.
Cash flow from operating activities reached €2.5 billion in the first half, while net cash stood at €7.729 billion on September 30, 2026. Despite sales and profit growth, Richemont shares fell 6.8% to 164.15 Swiss francs on November 13, according to Investing.com coverage. Chairman Johann Rupert said the macroeconomic and geopolitical environment would remain volatile "for the foreseeable future." The interim report for financial year 2027 was scheduled for November 20, 2026, at 07:00 Central European Time. The third-quarter sales announcement, for the period ended December 31, 2026, was scheduled for January 14, 2027, at 07:00 Central European Time.