Editor’s Note
Richemont’s latest results highlight a resilient performance, with strong jewellery sales driving profit growth despite challenges in the watch segment. The completion of the YNAP sale marks a strategic shift for the luxury group.
The Swiss group Richemont concluded the 2024/2025 fiscal year with a 4% increase in revenue to €21.4 billion and a 16.8% rise in net profit. Jewellery Maisons shone, while watches declined. Net profit exceeded expectations, and the sale of YNAP was completed. The stock price in Zurich rose by 7%.
The group, owner of houses including Cartier, IWC, Montblanc, Van Cleef & Arpels, Buccellati, and, since October, Vernier, achieved these results despite a sales decline, particularly in the Asia-Pacific region where signs of a slowdown in the Chinese luxury market became evident. However, the decline in Asia was more than offset by strong performances in other regions: the Americas rose by 16%, Japan by 25%, Europe by 10%, and the Middle East and Africa by 15% (all at actual exchange rates).
In the fourth quarter alone, Richemont recorded an acceleration, with revenue growth of 8% (+7% at constant exchange rates), again led by the Jewellery Maisons, the only segment guaranteeing double-digit growth.
Annual net profit increased by 16.8% to €2.75 billion, exceeding analysts’ expectations of around €2.2 billion. The group’s overall profit for the fiscal year increased by 17% to €2.8 billion, despite a €555 million loss related to discontinued operations, including the impairment of YOOX Net-A-Porter (YNAP) assets, following its sale to Mytheresa.
The sale of YNAP, completed in April, strengthened the group’s financial position. Richemont ended the year with a cash flow of €4 billion and no financial debt. Instead, it holds a 33% stake in Mytheresa Capital and also provides a €100 million credit line to support YNAP’s residual funding needs.
The Board of Directors will propose a dividend of 3 francs per share to the General Meeting, up from 2.75 francs last year.
The Jewellery Maisons, the group’s core division, confirmed their central role in Richemont’s strategy. This division’s annual revenue grew by 8% to €15.3 billion, with a particularly solid performance in the fourth quarter (+11%). Its profitability remained at high levels: the operating margin reached 31.9% for the year and 31.1% in the last quarter, despite rising raw material costs.
Not all business areas shone equally. Revenue from the Specialist Watchmakers division decreased by 13% for the year, and its operating margin fell to 5.3%. Against a backdrop of persistently weak Swiss export data, this division’s underperformance contributed to an overall operating profit of €4.5 billion, down 7% at actual exchange rates (-4% at constant rates).
The ‘Other’ area recorded 7% growth but posted a negative operating margin (-3.7%), with Fashion & Accessories suffering from an accumulation of unsold inventory.
The market highly appreciated the balance sheet results. Richemont’s share price rose by over 7% on the Zurich Stock Exchange, reaching 165.90 Swiss francs.