Richemont first-half sales climb 16% to €12.3bn as hard luxury stays ahead

Richemont first-half sales rose 16% to €12.3 billion in the six months to 30 September, as demand for watches and jewellery continued to outstrip high-end fashion and accessories. The Swiss group owns Cartier and Van Cleef & Arpels, the two houses that anchor its portfolio.

At constant exchange rates the increase was 17%, with the second quarter up 13%. That was a slower pace than the first quarter, when sales rose 20%, but chairman Johann Rupert still called the half strong, crediting the "operational discipline" of the business against a volatile backdrop.

Operating profit climbed 33% to €3.1 billion, despite higher raw material costs and gold in particular. Profit for the six months rose 39% to €2.5 billion. The jewellery maisons grew 18% at reported exchange, the strongest division in the group.

Richemont's specialist watch division and its "other" division, which holds the fashion and accessories houses, each rose 9%. Every region grew in double digits except the Middle East and Africa, which fell 2%. The share price still fell nearly 7% to 164 Swiss francs in early trade.

Where the growth came from

At reported exchange the Americas led every region with sales up 23%, followed by Japan at 18%, Asia-Pacific at 17% and Europe at 12%. Chief executive Nicolas Bos said jewellery sold across all price points and categories, from accessible lines to high jewellery.

Van Cleef & Arpels' Alhambra and Cartier's Clash and Love collections grew strongly, Bos said, alongside the high jewellery ranges. Most buyers were local clients, with around 15% of sales coming from tourists rather than from travel retail.

Our brand map of Richemont records that jewellery maisons alone delivered 72% of group revenue in the last fiscal year, alongside eight specialist watchmakers and a set of fashion houses. This half continues that pattern, with jewellery growing at twice the rate of watches.

Rupert said the excellent performance of watches and jewellery came from demand for both "iconic" collections and product novelties. The results arrive against a difficult geopolitical and macroeconomic backdrop, in which hard luxury has kept outperforming fashion and accessories.

The Rupert family holds roughly 10% of Richemont's equity yet controls 51% of voting rights through a dual-class share structure, according to our guide to the group's brands. That is the context in which the chairman's remarks on acquisitions carry weight.

The De Beers question

Speaking after the results, Rupert left open whether Richemont will join the consortium seeking to buy Anglo American's 85% stake in De Beers. He did not name the company, and said no decision had been made.

"In terms of possible acquisitions, we haven't made our mind up about anything," Rupert said. "And any investment we may make in diamonds will not make any meaningful difference to our balance sheet for profit and loss."

Bos declined to comment on the reported plans for De Beers, and Signet, the American jeweller also reported to be joining, has declined as well. The consortium is the Global Diamond Consortium, led by former De Beers Group chief executive Gareth Penny.

Anglo American put De Beers up for sale in 2024 as part of a portfolio clear-out to focus on copper and premium iron ore. It has held a stake since the 1920s and took full control in 2011.

We reported that Botswana's president Duma Boko endorsed Penny's bid and plans to double the country's stake to 30%, making it the largest shareholder. Namibia and Angola would also take part in the transaction, Boko said in his State of the Nation address.

De Beers chief executive Al Cook said he was "delighted" by Botswana's decision, adding that De Beers has led the diamond industry since 1888. The business spans mining, marketing and retail, and produces about one-third of the world's rough diamonds by value.

Analysts at RBC and Jefferies backed the reported role Richemont might play in the consortium, as we noted at the time. De Beers also owns De Beers London jewellers, whose 24 stores worldwide include a Madison Avenue flagship we saw reopen with double-digit growth.

Support the content you love — it’s free 🎉

Add Worthbury as a preferred source on Google. Our stories will be more likely to appear in Google’s Top Stories. It’s free and supports our team. Thank you!

Add as preferred source

You can remove us any time in Google’s source preferences.

This briefing is published daily using an AI-powered system crafted by Worthbury's team and finely tuned to meet our editorial standards. While we continuously test and review the output, mistakes can sometimes happen. Tell us if you spot one.

Image: Richemont