13 November 2026
If you are covering Richemont's results, please see the following comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
"Richemont has wrapped up the earnings season for the luxury houses with a strong set of second quarter results. Group organic sales rose 13%, ahead of consensus expectations of 12% and driven by the company’s specialist watchmakers division and its other fashion brands. The group’s operating profit was also a beat despite the elevated raw material prices which impacted gross margin, helped by strong sales leverage and investments in brands.
"However, the key sentiment driver of the stock, its jewellery Maisons, grew 14% against what was a high comparison base of 14% and came in below consensus of 16% which is weighing on Richemont’s share price today. The miss was driven by the weakening of sales in the Middle East where Cartier and Van Cleef over indexes compared to peers. However, the average organic revenue growth printed by luxury houses this quarter has been around 1-2%, so 14% is a relatively strong outperformance. This momentum continues to be driven by the iconic lines such as Cartier and Van Cleef, but more novelty launches such as the Alhambra line being introduced in pink enamel is helping to sustain growth.
"While the focus is consistently placed on Richemont’s jewellery divisions, but it is encouraging to see an acceleration in specialist watchmakers. The division grew by 12% and has experienced sustained growth for over a year now, led by brands such as Constantin, ICW and Panerai. Alongside this, its other division, which includes fashion brands such as Alaia and Peter Millar, grew 9%, driven by fashion and accessories.
"Richemont posted impressive double-digit growth across all regions, aside from the Middle East where sales were down 7%. While local demand has been resilient in the region, weaker tourist spend has weighed fairly heavily. Comparatively, the US saw growth of 19% with double-digit growth across all business areas, supported by local demand, while Japan grew 23% with strong growth across all areas driven by local demand and tourism. In Asia, there was a modest rise in the second quarter from the Chinese consumer, while South Korea and Taiwan markets showed a significant increase."
