Richemont shares fall as much as 9% as jewellery sales growth misses expectations
Key Facts
Richemont shares fell as much as 9% during Friday’s session on November 13, 2026, after second-quarter results for fiscal 2027 showed sales at its jewellery maisons grew more slowly than analysts expected. Reuters reported that the shares were down 4.7% at 10:45 GMT. Jewellery maison sales rose 14% to €4.41 billion at constant exchange rates in the quarter ended in September. That was below the 16% growth forecast in an RBC poll. Group-wide sales, meanwhile, topped the average estimate, highlighting the contrast between the performance of its largest segment and the overall result.
Group sales reached €5.95 billion in the three months ended September 30, up 13%, compared with Visible Alpha’s average estimate of €5.89 billion. Despite beating estimates, growth slowed from 20% in the first quarter of fiscal 2027. Jewellery sales were weaker than analysts expected, although they continued to grow at a double-digit rate. The divergence puts the group’s overall result in a more mixed context: sales exceeded expectations, but growth slowed from the previous quarter and fell short of forecasts for the jewellery segment.
Chief Executive Nicolas Bos said long-term jewellery trends remained positive and that sales growth came from higher volumes, not just price increases. The company attributed the jewellery maisons’ first-half performance to strong demand across markets for iconic jewellery and watch collections, as well as the appeal of new products. Maison sales rose 19% at constant exchange rates in the first half ended September 30, while specialist watchmakers’ sales increased 10%. In the second quarter alone, specialist watch sales rose 12% to €833 million. The figures show growth across more than one business, alongside a quarterly slowdown in jewellery relative to market expectations.
Performance varied by region in the second quarter: sales at constant exchange rates rose 19% in the Americas, 15% in Europe, and 10% in Asia Pacific and Japan, while falling 7% in the Middle East and Africa. For the first half, the company said jewellery maison growth spanned all regions except the Middle East and Africa, and was strongest in Japan and the Americas. Sales in the broader Middle East and Africa region fell 2% in the first half compared with the same period. The company linked the decline to tourist spending being affected by conflict in the region, particularly in the UAE. The results place the Arab region among the regional exceptions facing weakness, while other regions recorded quarterly growth.
Richemont said higher production costs, particularly gold and raw material prices, weighed on gross margin in the first half. The company said those costs were largely offset by price increases over the past year and a positive sales mix. Direct-to-customer sales also rose to 78% of the total in the first half, from 76% in the same period a year earlier. At group level, Chairman Johann Rupert described the economic and geopolitical environment as likely to remain volatile for the foreseeable future and said the company could not predict what lies ahead. This reflects continued sales growth alongside cost pressures and uncertainty surrounding the group’s outlook.
Commenting on China, Rupert said the market would recover, but he did not know when. He gave no timing for that recovery, while saying long-term jewellery trends remained positive. Richemont’s 2026 interim report is scheduled to be available for download from the group’s website starting November 20, 2026. It follows the announcement of first-half results for the period ended September 30, which showed growth in sales at the jewellery maisons and specialist watchmakers. The second-quarter performance and the share reaction in the November 13 session remain the focus of the report, as investors await the detailed information in the interim report.