On July 16, Swiss luxury group Richemont announced its financial results for the first quarter of fiscal year 2026 (April to June 2025). The group posted sales of €5.4 billion, representing a 6% year-on-year increase at constant exchange rates. Despite persistent global economic headwinds, the strong performance of its jewellery division drove overall growth, aligning closely with market expectations.
In particular, the jewellery segment—led by flagship brands Cartier and Van Cleef & Arpels—remained robust, recording an 11% year-on-year increase. Meanwhile, the watch division, which includes Vacheron Constantin and Jaeger-LeCoultre, saw sales decline by 7%. However, this represented a modest improvement compared to the previous quarter’s 11% drop.
Regionally, Europe, the Americas, and the Middle East & Africa all recorded double-digit growth. The Americas, driven primarily by the U.S. market, rose 17%, outperforming HSBC’s forecast of 12% growth. While sales in the Asia-Pacific region remained flat overall, a 7% decline in China, Hong Kong, and Macau was offset by strong performance in other Asian markets.
At the same time, the broader Swiss watch industry continues to face mounting pressure. Concerns are growing that Swiss watch exports may fall to their lowest level since the pandemic in 2020, amid declining global demand and the possibility of new U.S. tariffs. In this challenging environment, Richemont has strategically focused on its jewellery business to further differentiate itself from competitors.
This strategy has also been well-received by investors. Richemont shares have risen 9% since the beginning of 2025, with the stock climbing as much as 2.4% in early trading on July 16. In contrast, rival LVMH Moet Hennessy Louis Vuitton, which has a broader portfolio spanning fashion, leather goods, and jewellery, has seen its share price drop by over 25% year-to-date.
Copyright © 2025 Oui Speak Fashion. All rights reserved.