Switzerland-based luxury goods holding company Richemont has reported a resilient first-half (H1) performance for the six months (6M) ended September 30, 2025, delivering total sales of €10.6 billion (~$12.30 billion), an increase of 10 per cent year-over-year (YoY) at constant exchange rates and 5 per cent YoY at actual rates.

The growth accelerated sharply in the second quarter, with sales rising 14 per cent at constant rates and 8 per cent at actual rates, reflecting broad-based momentum across regions and business areas.

Richemont has delivered sales of €10.6 billion (~$12.30 billion) in H1, an increase of 10 per cent YoY at constant rates, with Q2 accelerating to 14 per cent.
Operating profit rose to €2.4 billion (~$2.78 billion) and net profit reached €1.8 billion.
All regions saw double-digit Q2 gains.
Strong cash flow and solid liquidity supported continued investment despite ongoing macroeconomic pressures.

The group recorded operating profit of €2.4 billion, an increase of 7 per cent at actual exchange rates and 24 per cent at constant rates, resulting in a 22.2 per cent operating margin. Profit for the period surged to €1.8 billion, supported by continued 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, bolstered by €1.9 billion in cash flow from operating activities.

After 18 challenging months in the global watch market, the Specialist Watchmakers division posted a slower sales decline of 6 per cent (-2 per cent at constant rates) to €1.6 billion. Q2 delivered encouraging improvement with sales rising 3 per cent at constant rates, even as volatile demand in China and additional US tariffs weighed on performance. Operating margin stood at 3.2 per cent, Richemont said in a press release.

Sales in the ‘Other’ business area were broadly stable, down 1 per cent at actual rates but up 2 per cent at constant rates, with Q2 contributing a 6 per cent rise at constant rates. Fashion & Accessories Maisons, including Alaia, Peter Millar and Chloe, delivered stronger performance, though the segment posted a €42 million operating loss.

All regions registered double-digit growth in Q2 at constant exchange rates. Europe, the Americas, and the Middle East & Africa delivered strong first-half results, while China, Hong Kong, Macau and Japan returned to growth in Q2. Asia Pacific overall remained stable for the half, with South Korea and Australia continuing double-digit momentum.

Direct-to-client sales comprised 76 per cent of total revenue, consistent with last year, while retail sales grew 6 per cent. Wholesale sales increased 5 per cent at actual exchange rates, supported by double-digit gains in Europe, the Americas, and the Middle East & Africa.

The operating cash flow rose 48 per cent 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 18.1 months of inventory rotation, but remained manageable. The dividend payout of CHF 3.00 per share accounted for the largest outflow in the period, contributing to a reduction in net cash since March 2025, though the group remains well-capitalised.

Richemont expects the operating environment to remain challenging, with continued geopolitical and economic pressures, elevated material costs and ongoing exchange rate volatility. Despite this, the group remains committed to investing in long-term growth, expanding manufacturing capabilities, and strengthening its distribution network.

Richemont closed the period with momentum in key regions and business areas, reaffirming its confidence in the group’s strategic direction and long-term value creation, added the release.

Fibre2Fashion News Desk (SG)