Financial review

Any long form references to Hong Kong, Macau and Taiwan within this Company Announcement are Hong Kong SAR, China; Macau SAR, China; and Taiwan, China, respectively.

Unless otherwise stated, all comments below relate to the results of the continuing operations. 

Sales

For the six months ended 30 September 2026, sales were 16% above the prior-year period at actual exchange rates. Excluding the effects of foreign exchange rate movements, sales grew by 17%, with strong momentum throughout the first half against elevated comparatives.

All regions reported double-digit growth, except for Middle East & Africa, affected by the conflict in the region since March.

In the Americas, sales for the period rose by 23% versus the prior-year period at both actual and constant exchange rates, fuelled by strong local demand across all business areas, markets and distribution channels. Sales in Europe were 12% up on the prior-year period (+13% at constant exchange rates), underpinned by higher local and tourist spend. All major markets saw their sales rise, with notable growth in France and the United Kingdom. In Asia Pacific, sales were 17% higher than the prior-year period (+16% at constant exchange rates), led by double-digit growth at the Jewellery Maisons and the ‘Other’ business area. Sales in China, Hong Kong and Macau combined, saw robust growth, led by higher demand in Hong Kong and Macau. Most other markets in the region grew by double digits, with noteworthy performances in the South Korean and Taiwanese markets. Sales in Japan rose by 18% compared to the prior-year period (+30% at constant exchange rates). Growth across all business areas was underpinned by strength in both local demand and tourist spend. In the Middle East & Africa region, sales declined modestly, down by 2% at both actual and constant rates. Whilst local demand was resilient, tourist spend was materially affected by the conflict in the region, particularly in the United Arab Emirates market.

Retail sales, which made up 72% of total Group sales, were 19% above the prior-year period (up by 20% at constant exchange rates), with double-digit growth across all regions except for Middle East & Africa. Online retail sales made up 6% of total sales and were 17% higher than the prior-year period at both actual and constant exchange rates, led by strong performance in Japan and the Americas. Sales in the wholesale channel were up by 7%, with positive performances across all regions and business areas at constant exchange rates. Led by the strong performance of retail and online channels, the share of direct-to-client sales increased to 78%, up from 76% in the prior-year period.

Sales at the Jewellery Maisons were up by 18%, or by 19% at constant exchange rates. Double-digit growth was recorded across all regions except for Middle East & Africa. Specialist Watchmakers’ sales came in 9% higher than the prior-year period (10% at constant exchange rates), led by growth in the Americas, complemented by double-digit growth in Europe, Japan and Middle East & Africa. Sales at the ‘Other’ business area grew by 9% at both actual and constant exchange rates, reflecting strong growth in Asia Pacific and the Americas.

Further details on sales by region, distribution channel and business area are provided under “Review of operations”.

Gross profit

Gross profit for the period amounted to € 8 165 million, up by 18%. This represented 66.5% of sales, up by 120 basis points compared to the prior-year period. Gross profit included € 229 million positive tariff-related one-time items, equivalent to 190 basis points of gross margin. Excluding this positive contribution, gross margin was down 70 basis points compared to the prior-year period. Increased production costs, largely due to higher raw material prices (notably gold), were mostly offset by the combined effect of price increases over the past year and a positive sales mix. However, whilst foreign exchange rate headwinds moderated during the period under review, their overall impact remained negative.

Operating profit

Operating profit for the six months ended 30 September 2026 increased to € 3 129 million, up by 33% compared to the prior-year period (+38% at constant exchange rates) and representing 25.5% of sales. Excluding positive one-time items, operating margin stood at 23.6%, an increase of 140 basis points versus the prior-year period.

Overall, net operating expenses grew by 10%, ending the period at 41.0% of sales, a reduction of 210 basis points compared to the prior-year period. Selling and Distribution expenses increased by 9%, reflecting higher personnel expenses and variable lease costs, as well as continued selective retail expansion. Selling & Distribution expenses represented 24.2% of sales, 150 basis points lower than the prior-year period in a context of strong sales growth. Communication expenses grew by 14%, the increase being mostly led by Jewellery Maisons. As a percentage of sales, communication expenses remained consistent with the prior-year period at 8.1%. Administrative and other expenses increased by 8%, primarily reflecting higher personnel expenses and positive non-recurring items in the prior-year period.

Profit for the period

Profit for the period from continuing operations, at € 2 528 million, was 41% higher than the prior-year period. This increase of € 732 million was largely explained by the combined effect of the € 771 million rise in operating profit described above, a € 114 million reduction in net finance costs, partly offset by a € 172 million increase in tax charges.

Overall, net finance costs amounted to € 44 million for the period under review and included net interest expenses of € 30 million. In addition, net foreign exchange gains on monetary items amounted to € 316 million and were more than offset by € 418 million losses arising from the Group’s foreign exchange hedging programme. Fair value gains of € 88 million were generated primarily on the Group’s investments in money market funds and segregated mandates.

The Effective Tax Rate for the Group was 19.5%, in line with the prior-year period and reflecting the current geographical mix of the Group.

As a result, profit for the period stood at € 2.5 billion, up by 39%. 

Earnings per share (1 ‘A’ share/10 ‘B’ shares) amounted to € 4.29 on a diluted basis.

To comply with the South African practice of providing headline earnings per share (‘HEPS’) data, the relevant figure for headline earnings for the period ended 30 September 2026 was € 2 512 million (2025: € 1 768 million). Basic HEPS for the period were € 4.27 (2025: € 3.01); diluted HEPS for the period were € 4.26 (2025: € 3.00). Further details regarding earnings per share and HEPS, including an itemised reconciliation, may be found in note 9.3 of the Group’s condensed consolidated interim financial statements.

Cash flow

Cash flow generated from operating activities increased to € 2 500 million compared to € 1 854 million in the prior-year period. The increase of 35% reflected the rise in operating profit described above, combined with lower investments in working capital compared to the prior-year period, more than offset by cash outflows on foreign exchange derivatives.

Net investments in property, plant and equipment of € 360 million represented an increase of 3% compared to the prior-year period.

Cash flows from investing activities included the proceeds from the sale of the Group’s shareholding in Avolta, for an amount of € 360 million.

The cash outflow from the disposal of subsidiary undertakings of € 20 million represented the net cash balances held by Baume & Mercier on the date of disposal to the Damiani Group.

The 2026 ordinary dividend of CHF 3.30 per share (1 ‘A’ share/10 ‘B’ shares), together with an exceptional dividend of CHF 1.00 per share (1 ‘A’ share/10 ‘B’ shares) was paid to shareholders, net of withholding tax, in September. The overall dividend cash outflow in the period amounted to € 2 679 million, an increase of € 791 million compared to the prior-year period.

The Group acquired 0.9 million ‘A’ shares during the six-month period to hedge executive share grants. The cost of these purchases was partially offset by proceeds from the exercise of share options by executives, leading to a net outflow of € 137 million.

Balance sheet

Inventories of € 10 262 million were € 649 million higher than at 30 September 2025, a moderate increase in a context of strong sales growth. Consequently, inventory rotation represented 16.1 months, down from 18.1 months in September 2025.

The Group’s gross cash position at 30 September 2026 reached € 12 216 million while the Group’s net cash position stood at € 7 729 million. The decrease of € 767 million compared to the position at 31 March 2026 is more than explained by the dividend payment. The Group’s net cash position is comprised of cash and cash equivalents, investments in externally managed bond funds and money market funds, as well as external borrowings, principally the € 4.5 billion euro-denominated corporate bonds.

Shareholders’ equity represented 57% of total assets in line with 31 March 2026.

Investor/analyst and media enquiries

Alessandra Girolami
Group Investor Relations Director

James Fraser
Investor Relations Executive

Edward Walsh
Group Corporate Communications Director

+41 22 721 3003 (investor relations)
investor.relations@cfrinfo.net 
+41 22 721 3507 (media)
pressoffice@cfrinfo.net 
richemont@teneo.com 

About Richemont

Disclaimer

This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumers traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers’ desire to travel to our retail stores. International conflicts or wars, including resulting sanctions and restrictions on importation and exportation of finished products and/or raw materials, whether self-imposed or imposed by international countries, non-state entities or others, may also impact these forward-looking statements. If international tariffs are imposed or increased, materials and goods that Richemont imports may face higher prices, which could lead to reduced margins or increased prices that could cause decreased consumer demand. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group's control. Richemont does not undertake to update, nor does it have any obligation to provide updates of, or to revise, any forward-looking statements.