Dive Brief:
- Richemont reported a revenue increase of 4% to 21.4 billion euros, or about $23.9 billion, for the year ended March 31, according to a Friday earnings release.
- At the company’s jewelry brands — Buccellati, Cartier, Van Cleef & Arpels and Vhernier — sales were up 8% to 15.3 billion euros for the year, led by double-digit growth in H2, per the release. The increase was offset by a 13% decline to 3.3 billion euros in the specialty watchmaker division, which includes brands such as Piaget and Baume & Marcier.
- In Richemont’s other division, which includes fashion and accessories brands Chloé, Alaïa and Gianvito Rossi, sales increased 7% to 2.8 billion for the year.
Dive Insight:
The luxury sector continues to post uneven results as consumers pull back their spending on high-end goods. While some companies, such as Aeffe, LVMH and Kering, have recently posted revenue declines, firms including Prada Group and Brunello Cucinelli have seen double-digit increases.
At Richemont, the strength of the jewelry category amid other luxury declines helped the company balance challenges elsewhere.
Last year, former Van Cleef & Arpels CEO Nicolas Bos was appointed CEO of Richemont, and in the second half of fiscal 2025, the company saw especially robust results, with a 10% revenue increase in Q3 and a 7% revenue increase in the fourth quarter.
Most regions posted double-digit growth for the year, with the exception of Asia Pacific, where sales declined 13%. The company said the downturn was driven by a softening in China “that mostly reflected weak domestic demand and increased mainland Chinese spending abroad.” However, the rest of the Asia Pacific region posted robust growth, per the release, led by the South Korean market.
Sales in the Americas increased 16% year over year, and Japan continued to show growth, with sales up 25%. In the combined region encompassing the Middle East and Africa, sales were up 15% for the period. In Europe, sales grew 10% for the year, with notable performances in France, Italy and Spain, per the release.
Richemont said that the April sale of Yoox Net-A-Porter to Mytheresa happened outside of its fiscal 2025 reporting period, and that “the transaction paves the way for both the Mytheresa and YNAP teams, their brand partners and clients alike to fully benefit from the enhanced value propositions and expanded global reach offered by the combined businesses.”
Johann Rupert, Richemont’s chairman, said in the release that fiscal 2025 was “a year of progress underscoring the Group's strategic focus” against a complicated landscape.
“As I have said before, ongoing global uncertainties will continue to require strong agility and discipline,” Rupert said, adding that the company’s long-term perspective, underpinned by a healthy balance sheet, “constitutes a proven formula that has delivered seven-fold sales growth over the past 25 years, and remains central to our strategy.”
