Editor’s Note
Richemont’s latest quarterly results demonstrate resilient demand in the luxury sector, with sales growth surpassing analyst forecasts. The group’s strong cash position underscores its financial stability amid ongoing market volatility.
Swiss luxury goods giant Richemont Group announced its Q1 financial results for the fiscal year 2026 ending in June. The report shows:
First-quarter sales reached 5.41 billion euros, a 6% year-on-year increase at constant exchange rates, exceeding the expected 5.34%, with a 3% growth at actual exchange rates. Net cash remained robust at 7.4 billion euros, an increase of 100 million euros compared to the same period last year.
The most notable highlight of this quarter’s earnings report is undoubtedly the strong performance of the jewelry business.
The report indicates that Richemont’s four major jewelry brands—Buccellati, Cartier, Van Cleef & Arpels, and Vhernier—achieved an 11% growth at constant exchange rates in the quarter ending June 30, significantly surpassing analysts’ expectations of 8.55%.
This marks the third consecutive quarter of double-digit growth for the jewelry business, with sales reaching 3.91 billion euros, accounting for 72% of the group’s total sales.
In an uncertain macroeconomic environment, Richemont’s first-quarter sales growth was primarily driven by Europe, the Americas, and the Middle East and Africa. At constant exchange rates, Europe grew by 11%, benefiting from strong local demand and positive tourist spending, with key markets such as Italy and Germany performing notably well.
Sales in the Americas grew by 17%, supported by local demand across all business segments. The Middle East and Africa grew by 17%, led by the UAE market, with a significant contribution from increased tourist spending.
Sales in the Asia-Pacific region remained stable, flat at constant exchange rates. Notably, sales in Japan declined sharply by 15%, due to a high base from the same period last year (which saw 59% growth) and the strengthening yen weakening tourist spending, although local demand remained positive.
By business segment, jewelry sales increased by 11% year-on-year to 3.914 billion euros, far exceeding the expected 8.55%, marking three consecutive quarters of double-digit growth. The professional watchmaking business declined by 7% to 824 million euros. Other business sales were 674 million euros, a slight decrease of 1% year-on-year.
By channel, retail sales (directly operated stores) reached 3.734 billion euros, a 6% year-on-year increase, accounting for 69% of the group’s total sales, with growth in all regions except Japan. Online retail sales were 323 million euros, a 6% year-on-year increase. Wholesale and royalty sales increased by 6% year-on-year to 1.355 billion euros.
Driven by optimism, Richemont’s European shares opened higher today, currently up nearly 2%.
