Editor’s Note
This article highlights Richemont’s resilient Q1 FY2026 results, driven by strong jewelry sales despite global economic headwinds. The performance underscores the enduring demand for high-end luxury goods in key segments.
On July 16 (local time), the Swiss luxury group Richemont announced its results for the first quarter of fiscal year 2026 (April-June 2025). The group’s total sales reached 5.4 billion euros, a 6% increase year-on-year on a constant currency basis. Despite the ongoing global economic slowdown, robust growth in the jewelry division drove the overall performance, which was largely in line with market expectations.
The jewelry division, which includes Cartier and Van Cleef & Arpels, maintained strong momentum with an 11% year-on-year increase. In contrast, the watch division, which includes brands like Vacheron Constantin and Jaeger-LeCoultre, saw a 7% decline, although this represents a slight recovery from the 11% drop in the previous quarter.
Regionally, Europe, the Americas, and the Middle East & Africa all recorded double-digit growth. The Americas region, led by the US market, showed significant expansion with a 17% increase, exceeding HSBC’s forecast of 12% growth. The Asia-Pacific region as a whole remained flat, as strong sales in other Asian markets offset a 7% decline in China, Hong Kong, and Macau.
Meanwhile, the overall environment surrounding the Swiss watch industry is becoming increasingly challenging. Concerns are growing that exports of Swiss-made watches could fall to their lowest level since the 2020 pandemic, impacted by potential new US tariffs and a global decline in demand. In this context, Richemont is differentiating itself from competitors by focusing on its jewelry business.
This strategy has been well received in the stock market, with Richemont’s shares rising 9% since the beginning of 2025. Immediately after the market opened on the morning of July 16, the stock briefly rose by 2.4%. In contrast, its competitor LVMH Moët Hennessy Louis Vuitton has been struggling, with its stock price falling more than 25% year-to-date.