COMPAGNIE FINANCIERE RICHEMONT SA

Latest Results (28.08.2026):

COMPAGNIE FINANCIERE RICHEMONT SA — reporting for the year ended 31 March 2026 (FY2026), including Q4 FY2026 (Jan–Mar 2026): the Group delivered strong top-line growth and solid results with Group sales of €22.4bn (+5% actual; +11% at constant rates, Q4 +13% at constant rates), operating profit of €4.49bn (20.0% margin) and profit for the year of €3.484bn (+27%), supported by disciplined costs, sustained Jewellery momentum and a strong net cash position of €8.496bn.

Sales performance

Group sales €22,420m (+5% actual; +11% constant). Growth was broad-based across business areas, regions and channels — retail (71% of sales) +5% actual (+12% constant) and direct-to-client 77% of sales. Jewellery Maisons led with combined sales of €16.5bn (+8% actual; +14% constant).

Operating profit & margins

Operating profit €4,492m (+1% actual; +23% at constant rates) including €164m of non‑recurring costs. Operating margin was 20.0% (down 90bps year‑on‑year); gross margin fell 250bps to 64.4% due to adverse FX and higher raw material costs.

Jewellery Maisons

Strong performance: sales up 8% actual (14% constant) and an operating margin of 30.5%, with measured price increases, cost discipline and selective retail expansion driving market share gains.

Specialist Watchmakers

Sales €3.1bn (‑4% actual; +1% constant) with sequential improvement in H2 and an operating result of €107m (operating margin ~3.4%). Baume & Mercier sale to Damiani announced (closing expected summer 2026).

‘Other’ business area

Sales €2.7bn (‑2% actual; +3% constant). Fashion & Accessories showed improvement (notably Peter Millar, Alaïa); the area recorded an operating loss of €96m, a modest improvement year‑on‑year.

Profit, EPS and one-offs

Profit for the year €3,484m (+27%), partly reflecting non‑recurrence of the prior‑year €1.0bn YNAP write‑down in discontinued operations. Diluted EPS €5.909 (+27%). Non‑recurring items this year €164m (impairments and Baume & Mercier write‑down €59m).

Cash flow, balance sheet and dividends

Cash flow from operations €4,880m. Net cash position €8,496m (up €239m). Inventories €9,715m (+8%). Board proposes ordinary dividend CHF 3.30 per A/10 B shares (+10%) and a special dividend CHF 1.00 per A/10 B shares, subject to AGM approval.

FX, financing and tax

Adverse foreign‑exchange movements and higher gold/raw material costs weighed on margins. Net finance costs €144m (increase of €91m) included €534m FX losses partly offset by €374m hedging gains. Effective tax rate 20.4% (vs 16.5% prior year).

Geography & channels

All regions grew at constant rates; Americas and Middle East & Africa delivered double‑digit constant‑rate growth. Asia Pacific returned to growth (+1% actual; +8% constant). Wholesale 23% of sales and grew modestly; online retail rose 2% actual (+8% constant).

Outlook & strategic notes

Richemont emphasises long‑term investment in craftsmanship, brand desirability and selective footprint expansion while remaining vigilant on geopolitical uncertainty (notably Middle East). Management highlights continued focus on cost discipline and sustaining Maisons’ long‑term potential.