Richemont Posts Net Profit of €2.528 Billion in First Half of Fiscal 2027
Key Facts
Richemont said net profit reached €2.528 billion in the six months ended Sept. 30, 2026, up 39% from €1.813 billion in the year-earlier period. Profit exceeded analysts’ expectations of €2.26 billion, according to Reuters. The results covered the first half of fiscal 2027 for the Swiss group, which includes jewelry houses and specialist watchmakers. Diluted earnings per share also rose to €4.29, compared with €3.08 a year earlier. The results show profit growth alongside continued strong demand for jewelry, while conditions in the watch sector remained difficult.
Second-quarter sales rose 13% at constant exchange rates to €5.95 billion in the three months ended Sept. 30. The figure exceeded the average analyst estimate compiled by Visible Alpha of €5.89 billion, according to Reuters. But growth slowed from 20% in the previous quarter, putting the beat in the context of slower quarterly growth. Chairman Johann Rupert said the group had delivered "a strong first half, led by the continued excellent performance of the Jewellery Maisons." Reuters added that group sales grew 15% or more in the United States, Japan and Europe during the quarter, while sales at the jewelry unit rose 14% and those of specialist watchmakers increased 12%.
The jewelry houses were the strongest driver in the first half, with sales increasing 18% at actual exchange rates and 19% at constant exchange rates. The unit includes Boucheron, Cartier, Van Cleef & Arpels and Vhernier, and Richemont said demand for iconic collections and new products supported its performance. In the second quarter alone, sales growth at constant exchange rates was 14%, the group said. This shows that jewelry momentum continued, although its quarterly growth rate was below the pace for the first half. This performance contrasted with a more gradual recovery among specialist watchmakers.
Specialist watchmakers posted first-half sales of €1.7 billion, up 9% at actual exchange rates and 10% at constant exchange rates. In the second quarter, sales growth at constant exchange rates was 12%, Richemont said. However, the group said a recovery was "unlikely to be linear" as the industry continued to face challenges. The warning puts sales growth in the context of a sector whose trajectory remains uneven, even as the unit recorded a year-on-year increase. Reuters noted that weak demand in China weighed on watches, while jewelry led the group’s growth.
Operating margins also improved: the operating margin was 25.5%, up 330 basis points from the year-earlier period. Excluding the positive contribution from one-off items, the margin was 23.6%, an increase of 140 basis points year on year, according to Richemont’s statement. The difference between the two measures shows that one-off items lifted the reported margin, while the adjusted margin remained above its level a year earlier. By region, sales in the Americas grew 23% at both actual and constant exchange rates. They rose 12% at actual exchange rates and 13% at constant exchange rates in Europe, while increasing 17% and 16%, respectively, in Asia-Pacific.
Richemont said the macroeconomic and geopolitical environment would remain volatile for the foreseeable future, according to its statement. The group set Nov. 20, 2026, at 07:00 Central European Time, as the date for publishing its fiscal 2027 interim report. It also said its third-quarter sales results, for the period ended Dec. 31, 2026, would be released on Jan. 14, 2027, at 07:00 Central European Time. Its U.S.-listed share CFRUY closed at $21 in the Nov. 12 session, according to EL7 data. The interim report is the next release after the first-half results, while the January update will cover third-quarter sales.