Growth accelerated in the second quarter, with sales up 14 percent at constant rates and 8 percent at real rates, reflecting broad momentum across sectors and business lines.
Richemont posted sales of €10.6 billion (~$12.30 billion) in the first half, a 10 percent year-on-year increase at constant rates, with a 14 percent increase in the second quarter. Operating profit increased to €2.4 billion (~$2.78 billion) and net profit to €1.8 billion. All sectors saw double-digit growth in the second quarter. Strong cash flows and solid liquidity supported continued investment despite macroeconomic pressures.
The group recorded an operating profit of €2.4 billion, an increase of 7 percent at real exchange rates and 24 percent at constant rates, resulting in an operating margin of 22.2 percent. Profit for the period increased to €1.8 billion, due to continuing operations and the absence of last year’s €1.2 billion non-cash write-down from discontinued operations. Richemont’s net cash position remained solid at €6.5 billion, boosted by €1.9 billion cash flow from operating activities.
Following 18 challenging months in the global watch market, the Specialist Watchmakers division recorded a slow decline in sales of 6 percent (-2 percent at constant rates) to €1.6 billion. There was an encouraging improvement in the second quarter with sales increasing 3 percent at constant rates, while volatile demand in China and additional US tariffs weighed on performance. Operating margin stood at 3.2 percent, Richemont said in a press release.
Sales in the ‘other’ business sector remained broadly flat, declining 1 per cent at real rates but rising 2 per cent at constant rates, compared with a 6 per cent increase at constant rates in the second quarter. Fashion and Accessories maisons including Alaïa, Peter Miller and Chloé delivered a strong performance, although the segment posted an operating loss of €42 million.
All sectors recorded double-digit growth in the second quarter at constant exchange rates. Europe, the US, the Middle East and Africa delivered strong results in the first half, while China, Hong Kong, Macau and Japan returned to growth in the second quarter. Overall, Asia Pacific remained steady for the half, with South Korea and Australia continuing double-digit pace.
Direct-to-customer sales comprised 76 percent of total revenue, consistent with last year, while retail sales increased 6 percent. Wholesale sales increased 5 percent at real exchange rates, supported by double-digit gains in Europe, the Americas and the Middle East and Africa.
Operating cash flow rose 48 percent to €1.85 billion, supported by profit growth, lower working capital needs and gains from hedging activities. Inventory levels increased to €9.6 billion, reflecting an inventory rotation of 18.1 months, but remained manageable. A dividend payment of CHF 3.00 per share was the largest outflow in the period, contributing to a reduction in net cash since March 2025, although the group remains well-capitalized.
Richemont expects the operating environment to remain challenging with continued geopolitical and economic pressures, increased material costs and ongoing exchange rate volatility. Despite this, the Group is committed to investing in long-term growth, expanding manufacturing capabilities and strengthening its distribution network.
The release said Richemont ended the period with momentum across key sectors and business areas, reaffirming its confidence in the group’s strategic direction and long-term value creation.
Fibre2Fashion News Desk (SG)
