Richemont's Jewelry Brands Lead Growth in Fiscal Year 2026

Compagnie Financière Richemont SA has announced strong financial results for the fiscal year ended March 31, 2026, with its prestigious jewelry brands significantly outperforming other segments of its portfolio. Despite a volatile geopolitical landscape and rising gold prices, the luxury conglomerate reported overall sales of €22.4 billion ($26 billion), a 5 percent increase at actual exchange rates (11 percent at constant exchange rates). The fourth quarter saw sales rise by 4 percent at actual rates (13 percent at constant rates) to €5.4 billion ($6.3 billion).

Jewelry Division Drives Performance

Richemont's jewelry maisons—Cartier, Van Cleef & Arpels, Buccellati, and Vhernier—experienced high demand across all regions, contributing significantly to the group's success. The jewelry division's sales increased by 8 percent year-over-year (14 percent at constant exchange rates) to €16.5 billion ($19.2 billion) for the full fiscal year. In the fourth quarter alone, jewelry sales grew by 7 percent year-over-year (16 percent at constant exchange rates) to €4 billion ($4.64 billion).

The company implemented measured price increases for its jewelry brands to offset higher gold prices and unfavorable currency movements. Richemont Chairman Johann Rupert highlighted the agility of the brands in managing operating costs while continuing to enhance brand desirability and selectively expand their retail presence. The Americas region saw the largest increase in jewelry sales, up 11 percent year-over-year at actual exchange rates.

Key collections continued to perform well: Cartier's 'Love' and 'Panthère' lines remained popular, while Van Cleef & Arpels saw success with its 'Alhambra' and 'Perlée' collections. Buccellati's 'Opera Tulle' and 'Macri' lines also contributed to the division's strong showing. High jewelry collections were further boosted by exclusive events.

Watchmaking Division Shows Encouraging Signs

While Richemont's watch brands have faced challenges in recent years, Rupert noted 'encouraging' signs of stabilization. The watch division, comprising brands such as A. Lange & Söhne, Jaeger-LeCoultre, and Vacheron Constantin, reported sales down 4 percent year-over-year for the fiscal year (up 1 percent at constant exchange rates) to €3.1 billion ($3.6 billion). Fourth-quarter watch sales were down 5 percent year-over-year (up 2 percent at constant exchange rates) to €719 million ($834 million).

The stabilization in the watch division was supported by growth outside of China, with a notable 12 percent increase in the Americas. Brands like A. Lange & Söhne, Jaeger-LeCoultre, and Vacheron Constantin showed sequential improvement in the latter half of the year.

Strategic Moves and Regional Performance

Richemont is strategically repositioning its retail footprint, with new store openings and renovations by Cartier, Van Cleef & Arpels, and Buccellati. Vhernier's retail presence is also being adjusted in key cities. In a significant move, Richemont announced an agreement to sell Baume & Mercier to the Damiani Group, expected to close in the summer of 2026, with Richemont believing this will best realize the watchmaker's long-term potential.

Geographically, the Americas led growth, with sales up 8 percent for the year (17 percent at constant rates). Asia-Pacific also showed resilience, growing at high single digits at constant rates. While the Middle East and Africa region experienced a 3 percent decline in sales in Q4 due to geopolitical conflict, it was more than offset by strong performances elsewhere. Japan saw a 2 percent increase in sales, or 9 percent at constant exchange rates.

Financial Highlights and Outlook

Overall, Richemont's gross profit stood at €14.4 billion, with a gross margin of 64.4%. Operating profit reached €4.5 billion, resulting in an operating margin of 20.0%. Profit for the year saw a substantial 27% increase to €3.5 billion, partly due to the non-recurrence of a significant write-down in discontinued operations from the prior year. The group maintained a strong net cash position of €8.5 billion at the end of March 2026.

Looking ahead, Rupert acknowledged the persistence of uncertainty, particularly concerning developments in the Middle East. Richemont remains vigilant, focusing on its long-term strategy, brand desirability, and disciplined operations to deliver sustainable value.