【Geneva, Swit】Richemont Surprises the Markets – and Shows How True Luxury Remains Resilient in Uncertain Times

Richemont reports double-digit growth, a multiplied profit, and significantly exceeds expectations. However, behind this leap lies more than just a strong luxury business – it is also the resolution of a problem that has burdened the group for years.

The Swiss luxury group Richemont grows by ten percent in the first half of 2025/26 to 10.6 billion euros and increases net profit to 1.81 billion euros after a previous billion-euro write-down. The figures are clearly above analyst expectations – and raise the question of how sustainable this upturn is.
Richemont is entering the new fiscal year in an exceptionally direct manner: double-digit sales increases, a profit that has multiplied, and a market that is surprised to note how powerfully the jewelry and watch business remains in an economically nervous environment. Cartier is running. IWC is running. And the management in Geneva delivers a set of figures that makes even experienced luxury analysts look twice.
Most eyes in the financial world are on one number: 1.81 billion euros net profit. A year ago, this was just 457 million – a difference that is only partially explainable by operations. Because the previous year was marked by a valuation adjustment of over 1.3 billion euros related to Yoox Net-a-Porter (YNAP), that digital problem child that Richemont had to carry in its portfolio for a long time. The clean-up now acts like releasing a handbrake that had slowed the group down for years.

In local currencies, sales climb by ten percent to 10.6 billion euros. In an industry that recently experienced a slowdown – especially in fashion and cosmetics – this is remarkably solid growth. Richemont thereby confirms a development that has been observable for months: the business with high-priced jewelry is running stably because customers here react less cyclically than in other luxury segments.
Cartier, by far the most important brand in the group, remains the profit engine. Demand for high-priced jewelry collections is picking up again, particularly in the USA and the Middle East. At the same time, the watch divisions – including IWC and Vacheron Constantin – benefit from a market that is slowly stabilizing after a significant correction in the past two years.
The analyst consensus estimates were clearly exceeded: Visible Alpha had expected a profit of 1.72 billion euros. The fact that Richemont not only beats this mark but also does not need to rely on exceptionally strong special effects underscores the operational robustness of the group.

What is almost lost in the figures: With the departure of YNAP, Richemont has closed a chapter that irritated investors for years. The valuation adjustment last year was painful but unavoidable. Since then, the digital strategy has been reorganized, and this gives the group breathing room – both on the balance sheet and in communication. In the luxury industry, credibility is an asset; management has shed a burden with this step that also harmed the brand image.
Now Richemont stands with a clearer portfolio: focused on jewelry and haute horlogerie, less vulnerable in low-margin online areas, and with the ability to invest more strongly in core categories.

That Richemont delivers in the first half is beyond question. The crucial question, however, is how the operating environment develops. The global luxury market appears divided: while high-end luxury – particularly jewelry – remains robust, the entry-level and mid-price segments are weakening. Additionally, weaker demand in China continues to weigh on parts of the market.
Richemont is better protected against these developments than many competitors because the group hardly depends on Chinese mass luxury. At the same time, the geopolitical environment remains a risk factor, particularly in Europe and the Middle East.
For analysts, the focus is now primarily on whether Richemont can maintain the momentum in the second half – and how strongly the group keeps its cost base under control. The luxury market is less cyclical, but not invulnerable.

The group has closed a difficult chapter, delivered a strong half-year, and shows that true luxury goods – jewelry, watches, rare metals – remain a reliable factor even in 2025. The numbers are good. The message behind them is better: Richemont is strategically clearly positioned again.

And that is precisely what makes this result more remarkable than the pure profit jump.