Editor’s Note
Richemont, the luxury group behind Cartier and Van Cleef & Arpels, reported resilient first-half sales growth of 10 percent at constant exchange rates, demonstrating strong performance despite headwinds from high gold prices and geopolitical uncertainty.
Sales at Cartier parent Richemont grew 10 percent at constant exchange rates to 10.62 billion euros in the first half, despite challenges including surging gold prices and geopolitical events. Sales at the group, which also owns Van Cleef & Arpels, IWC, Alaïa, and Chloé, were up 5 percent at reported exchange rates for the six months ending September 30.
The second quarter was particularly strong, with all regions delivering double-digit growth at constant exchange rates. This was driven by “sustained local demand” and occurred despite price adjustments made to offset higher gold costs and currency fluctuations. The results exceeded analyst expectations, boosting the share price.
Jefferies analysts noted the results confirm Richemont as “the fastest growing in luxury,” with the jewelry division acting as a “remarkable locomotive for growth.” This was further supported by Cartier’s new product launches and price recovery strategies.
Sales at the jewelry maisons rose 9 percent to 7.75 billion euros at reported exchange rates and 14 percent at constant rates. The new Cartier Love Unlimited collection and Van Cleef & Arpels’ Flowerlace designs were bestsellers, while classic designs like the Alhambra also performed well.
Sales at the specialist watchmakers division were down 6 percent overall but showed sequential improvement. At constant exchange rates, watch sales declined 2 percent in the first half but returned to growth in the second quarter, rising 3 percent.
In China, Hong Kong, and Macao, sales stabilized in the first half and grew 7 percent in the second quarter at constant rates, driven by fine jewelry. The Americas region grew 18 percent, while Europe saw 11 percent growth at constant exchange rates over the six months.
Operating profit increased 7 percent to 2.4 billion euros. Profit for the period surged to 1.81 billion euros from 457 million euros, largely due to the non-recurrence of a significant write-down from the previous year.
Richemont stated it has maintained tight cost control while continuing to invest in jewelry manufacturing and store openings in key markets like China.
U.S. tariffs on Swiss and EU goods cost the company about 50 million euros in the first half. During an earnings call, Richemont principals said this figure could rise to 300 million euros for the full fiscal year if tariffs remained at 39%. Later that day, Swiss officials reached a preliminary agreement with the U.S. to reduce the rate to 15%.
