Story Highlight
– Richemont’s watch division grew 8% at constant currency.
– Jewellery sales surged 24% to €4.7 billion.
– Overall sales rose 20% year-on-year to €6.3 billion.
– Americas led growth with 27% increase in sales.
– Specialist watchmakers improved, but profit margins declined.
Full Story
Richemont’s latest financial results demonstrate a recovery in its Specialist Watchmakers division, dispelling previous narratives that focus predominantly on its renowned jewellery segment, which includes Cartier and Van Cleef & Arpels. The quarter ending June 30 witnessed a noteworthy revival, with watch sales climbing by 8% at constant currency, reaching €873 million. While this marks an improvement, it remains considerably overshadowed by the jewellery division, which achieved an impressive €4.7 billion in sales—a 24% increase at constant currency and 21% at actual rates.
Overall, the conglomerate reported total sales of €6.3 billion for the period, reflecting a 20% rise year-on-year (17% in actual terms). The company’s transition towards a direct retail model is evident, with retail sales amounting to €4.5 billion, a 24% increase, compared to wholesale sales that grew by 7% to €1.4 billion.
Geographically, growth has been robust, with the Americas showcasing the strongest performance at a rate of 27%, generating €1.7 billion. The Asia Pacific region, Richemont’s largest market, saw a growth rate of 21%, amounting to €2.1 billion, while Europe also marked a positive shift with an 11% increase to €1.4 billion—its first uptick in sales after three years of stagnation.
Within the Specialist Watchmakers segment, brands such as Vacheron Constantin, Jaeger-LeCoultre, and A. Lange & Söhne were highlighted for their contributions to growth, particularly in the Americas and Japan. However, sales in Asia Pacific were described as “stable,” largely due to a downturn in China, Hong Kong, and Macau, which was offset somewhat by an upswing in other parts of the region. Additionally, Richemont’s pre-owned watch business, Watchfinder & Co., experienced double-digit growth.
The ongoing conflict in Iran had minimal impact on the company’s sales in the Middle East, although this region recorded the slowest growth at 3%. The UAE was particularly affected due to a significant decline in tourism, resulting in “modestly lower” sales figures.
Comparing the first quarter results to the previous full-year performance highlights the stark divide between the jewellery and watch divisions. For the fiscal year 2025-26, major jewellery houses such as Cartier and Van Cleef & Arpels drove sales up to €16.5 billion, accounting for around 75% of total group revenue and yielding an impressive operating profit of €5.0 billion, with a notable margin of 30.5%. In contrast, the Specialist Watchmakers division, which encompasses notable brands like IWC and Panerai, recorded €3.1 billion in sales, a 4% decrease in reported terms, albeit a 1% increase when factoring in constant exchange rates.
The second half of Richemont’s financial year, concluding on March 31, 2026, revealed improved performance, but the operating profit for the watch division fell to €107 million, resulting in a margin of only 3.4%, down from 5.3% in the prior year.
