Swiss luxury goods conglomerate Richemont has demonstrated remarkable resilience in the first half of its financial year, reporting better-than-expected sales performance largely fueled by robust jewellery demand and a significant recovery in key Asian markets.
Strong Financial Performance Exceeds Expectations
The luxury group, which owns prestigious brands including Cartier, Van Cleef & Arpels, and Buccellati, announced sales of 10.6 billion euros ($12.3 billion) for the period between April and September 2025. This represents a solid 5 percent increase compared to the same period last year, surpassing analysts' consensus forecast of 10.4 billion euros compiled by the AWP agency.
When excluding the impact of exchange rate fluctuations, the company's performance appears even stronger, with sales growing by an impressive 10 percent on a constant currency basis. This substantial growth occurred despite what Chairman Johann Rupert described as a "persistently complex macroeconomic and geopolitical backdrop."
Jewellery Division Leads Growth Momentum
The jewellery segment proved to be the standout performer for Richemont, with brands including Buccellati, Cartier, Van Cleef & Arpels, and Vhernier collectively achieving 6 percent sales growth during the reporting period. Company officials noted that momentum actually accelerated as the period progressed, with stronger performance in the second quarter.
Richemont highlighted the strategic measures taken by its jewellery maisons to navigate challenging market conditions, stating: "Against the backdrop of significant currency movements, higher raw material costs, and, to a lesser extent, the initial effect from additional US duties, the Jewellery Maisons implemented measured price increases whilst managing their costs efficiently."
Asian Markets Show Promising Recovery
Geographically, the company experienced double-digit sales growth across Europe, the Americas, and the Middle East. However, the most encouraging development came from Asian markets, where China, Hong Kong, Macau, and Japan all returned to growth after previous periods of stagnation.
The rebound in China, in particular, provided a significant boost to Richemont's overall performance, though the company maintained a cautious outlook about the sustainability of this recovery. Looking ahead, Richemont acknowledged that "recovery paths remain unsteady, for instance in China, and that external pressures show no sign of abating."
Investors responded enthusiastically to the positive results, driving Richemont's share price up by nearly 8 percent to 174 Swiss francs during early Friday trading on the Zurich stock exchange. The company's net profit also saw a dramatic improvement, reaching 1.8 billion euros compared to just 457 million euros during the same period last year, when results were negatively impacted by a major asset writedown.
The results announcement coincided with diplomatic efforts by Swiss Economy Minister Guy Parmelin, who was visiting Washington in hopes of addressing the 39-percent tariffs imposed on Swiss imports by the Trump administration in August. These tariffs, among the highest in President Trump's global tariff initiatives, have created additional headwinds for Swiss exporters including luxury goods manufacturers.
