Richemont had a steady first half of the year despite a complicated global backdrop. The group saw clear growth overall, with the second quarter standing out as particularly strong. Every major region picked up speed in Q2, including China, Hong Kong, Macau and Japan, which had been soft for a while. Europe, the Americas and the Middle East continued to perform well throughout.
Richemont is one of the biggest luxury groups in the world, best known in watch circles for owning some of the industry’s most respected maisons. Its watch portfolio includes A. Lange & Söhne, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai, Piaget, Roger Dubuis and Baume & Mercier. On top of that, the group also controls major jewellery houses like Cartier and Van Cleef & Arpels, which play an increasingly important role in its overall performance.
Direct to client sales remained the backbone of the business, making up the large majority of overall sales, just as they did last year.
The Jewellery Maisons were the main engine of the group once again. Cartier, Van Cleef & Arpels, Buccellati all enjoyed healthy demand for both jewellery and watches across markets. Even with higher material costs, currency swings and new duties in the United States, the Maisons managed to keep pricing sensible and costs under control. Strong sales helped them turn in a solid profit with healthy margins.
The Specialist Watchmakers had a tougher time. The global watch market has been under pressure for more than a year, and Richemont’s watch brands felt it too. The decline slowed in the second quarter and the Americas even returned to double-digit growth, but Asia Pacific remained soft, especially China. Rising gold prices and new US duties also weighed on results, making margins thin for this division.
In the group’s “Other” category, the picture was mixed but improving. Brands like Alaïa and Peter Millar continued to do well, and Chloé showed better momentum in the second quarter. Ready-to-wear was a bright spot, growing at a healthy pace.
Overall, Richemont’s operating profit rose thanks to strong sales and disciplined cost management, even as external pressures made margins tighter. Net profit increased sharply compared to last year, which had been dragged down by a large one-off write-down. Another very positive note is that the group ended the period with a strong cash position, giving it plenty of room to navigate whatever the global economy throws at it next.
Mixed Signals for Watches