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The group maintains strategic resilience as Jewellery Maisons contribute 72% of sales; Watchmakers decline 13% amid China softness.
Financials
04 August, 2025
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In a persistently volatile global environment, Compagnie Financière Richemont S.A. delivered a robust performance for the financial year ending 31 March 2025 (FY25), marked by solid revenue growth and a sharp focus on retail expansion, high jewellery leadership, and strategic brand development. Group sales increased by 4% at both constant and actual exchange rates, supported by double-digit gains in most regions outside Asia Pacific. Compagnie Financière Richemont S.A. ’s operating profit remained strong at €4,5 billion, with net income from continuing operations at almost €3,8 billion and a net cash position exceeding €8 billion.
The results come as the global luxury market stabilises after a period of adjustment. There is a plateau in personal luxury goods growth following post-pandemic highs, with cautious optimism for 2025 driven by a return to in-store experiences and high-net-worth consumer resilience. A luxury forecast echoes this sentiment, predicting moderate growth as brands balance exclusivity with global expansion and ESG-driven expectations.
Richemont opened its FY26 with a steady performance, reflecting cautious consumer optimism and a stabilising global luxury outlook. The Group reported €5.412 billion in revenue for Q1 FY26, a +6% increase at constant exchange rates and +3% at actual rates, building upon a modest +1% in Q1 FY24 and flat growth in Q1 FY23. This result positions Richemont slightly ahead of the global industry, where a study projected low-to-mid single-digit growth for 2025, with Europe and the Middle East outperforming Asia and the US in short-term momentum.
| Key Indicator | Q1 FY26 (€ million) | Q1 FY25 (€ million) | Q1 FY24 (€ million) |
|---|---|---|---|
| Revenue | 5.412 (+6%) | 5.268 (+1%) | 5.322 (+1.1%) |
Insights:
Q1 FY26 marked Richemont’s best first-quarter growth since FY22, driven largely by its core jewellery division and resilience in Europe and the Americas.
Performance outpaced peers such as Kering (Q1 2025 sales: -9%) and was comparable to LVMH Moët Hennessy - Louis Vuitton, whose Fashion & Leather Goods division posted a +7% Q1 gain.
| Business Area | FY26 Q1 Sales (€m) | Change YoY | % of Group Sales |
|---|---|---|---|
| Jewellery Maisons | 3.914 | +11% | 72% |
| Specialist Watchmakers | 824 | -7% | 15% |
| Other (F&A + Others) | 674 | -1% | 13% |
Insights:
The Jewellery Maisons continued to outperform, recording their third consecutive quarter of double-digit growth, reaffirming Richemont’s strategic concentration in high-margin categories.
Specialist Watchmakers, affected by persistent demand softness in China and Japan, posted a decline for the fourth straight quarter. Margin pressure continues to parallel broader industry trends, with Swatch Group and other watch-focused players also reporting subdued growth.
The Fashion & Accessories segment remained largely flat, with Peter Millar and Alala the most resilient performers, while Delvaux and Dunhill maintained modest gains.
| Region | Revenue (€m) | Change YoY | Share of Sales |
|---|---|---|---|
| Europe | 1.295 | +11% | 24% |
| Asia Pacific | 1.731 | – | 32% |
| Americas | 1.335 | +17% | 25% |
| Japan | 527 | -15% | 10% |
| Middle East & Africa | 524 | +17% | 10% |
Insights:
Europe and the Americas remained bright spots, driven by domestic demand and tourist spending - especially in Germany, Italy, and the US.
Japan recorded a significant drop, impacted by tough prior-year comparatives and reduced Chinese tourist traffic due to the stronger yen.
Asia Pacific, despite challenges in China (-7% across Mainland, Hong Kong, and Macau), benefited from strength in South Korea and Australia.
Compared to sector peers, Richemont’s regional split remains more Asia-centric (32%) than Kering Group, but less dependent on China than LVMH Moët Hennessy - Louis Vuitton’s Fashion & Leather Goods division (40-45% in Asia, including China).
| Channel | Revenue (€m) | Share of Sales | Change YoY |
|---|---|---|---|
| Retail (Direct) | 3.734 | 69% | +6% |
| Online Retail | 323 | 6% | +6% |
| Wholesale & Royalty | 1.355 | 25% | +6% |
Insights:
Direct-to-Client (DTC) continues to dominate at 75% of sales, reinforcing Richemont’s strategy to reduce dependency on wholesale.
The online channel, though still a small percentage, saw strong performance driven by jewellery and growth in developed markets.
The wholesale business rebounded slightly after FY25’s -3% dip, particularly in Europe and the Middle East.
Richemont closed FY25 with revenues of €21,4 billion, marking a 4% increase year-on-year. This performance followed a 3,3% rise in FY24 and 4% in FY23, with FY22 having experienced an exceptional 45,9% rebound post-pandemic.
This trajectory aligns with a stabilising luxury market, where global personal luxury goods sales grew moderately in 2024 and 2025, following explosive pandemic-era gains.
However, the Group's operating profit contracted 7% to €4,47 billion, following a 4,7% decline in FY24 and 48,4% increase in FY23. This suggests margin compression across some segments, reflecting cost pressures, Foreign Exchange impacts, and the softer performance in Specialist Watchmakers which includes brands such as Jaeger-LeCoultre, Panerai, IWC, and Vacheron Constantin, particularly in Mainland China and Japan. In contrast, industry peers like LVMH Moët Hennessy - Louis Vuitton and Hermes saw stronger operating leverage in 2025, highlighting the impact of Richemont's segment mix and regional exposure.
| Key Indicator | FY25 (€ million) | FY24 (€ million) | FY23 (€ million) | FY22 (€ million) |
|---|---|---|---|---|
| Revenue | 21.399 (+4%) | 20.616 (+3,32%) | 19.953 (+4,02%) | 19.181 (+45,93%) |
| Operating Profit | 4.467 (-7%) | 4.794 (-4,71%) | 5.031 (+48,41%) | 3.390 (129,36%) |
Jewellery Maisons, comprising Cartier, Van Cleef & Arpels, Buccellati, and the newly acquired Vhernier, continued to be the Group's growth engine, generating €15,3 billion in revenue (+8% YoY), representing 72% of total sales and delivering an operating profit of €4,9 billion with a robust 32% margin. This outperformed the broader luxury jewellery sector, which grew 5-7% in 2025. Growth was driven by sustained demand for Cartier, Van Cleef & Arpels, and newly acquired Vhernier, with high jewellery and bridal categories performing particularly well.
Specialist Watchmakers declined 13% to €3,3 billion, accounting for just 15% of Group sales. Operating profit stood at €175 million with a 5,3% margin, heavily impacted by softening demand in China and currency pressures from the strong Swiss franc. This is below industry peers such as Rolex and Audemars Piguet, which maintained steady watch sales by focusing on scarcity and verticalisation.
Fashion & Accessories and Other Businesses rose 7% to €2,8 billion, supported by double-digit growth at Alala, Peter Millar, and Watchfinder, although overall profitability was not disclosed.
| Business Area | FY25 Sales (€m) | Change YoY | % of Group Sales |
|---|---|---|---|
| Jewellery Maisons | 15.328 | +8% | 72% |
| Specialist Watchmakers | 3.283 | -13% | 15% |
| Other (Fashion & Accessories + Others) | 2.788 | +7% | 13% |
Richemont achieved diversified regional growth, with Europe contributing €4,9 billion, led by France (€1,1 bn), the UK, and Italy. Middle East & Africa grew strongly to €1,9 billion, with the UAE alone generating €1,3 billion. Compared to industry trends, Richemont's growth in MEA and Europe outpaced the broader sector, thanks to tourism-driven luxury demand and regional event activations.
Asia remained the largest region at €93 billion but showed muted growth due to a €4,2 billion contribution from China (including €2,93 bn from Mainland), and a notable €2,2 billion from Japan, both impacted by currency fluctuations and tourism dynamics. In contrast, Hermes showed growth in Greater China, reflecting brand-specific strength.
The Americas delivered €5,2 billion in sales, including €4,5 billion from the United States, highlighting strong DTC and retail demand, in line with the broader market recovery in North America.
| Region | Revenue (€m) | Change YoY | Share of Sales |
|---|---|---|---|
| Europe | 4.898 | +10% | 23% |
| Middle East & Africa | 1.929 | +15% | 9% |
| Asia | 9.336 | -2% | 44% |
| Americas | 5.236 | +16% | 24% |
| Total | 21.399 | +4% | 100% |
Richemont’s FY25 performance was underpinned by a strong DTC strategy, with Retail contributing €15 billion (70% of Group sales), up 6% YoY. This reflects continued investments in flagship renovations, omni-channel services, and store network expansion. DTC share is now comparable to Hermes (~75%) and LVMH Moët Hennessy - Louis Vuitton’s Fashion & Leather Goods (~72%).
Online Retail posted an 11% growth to €1,35 billion, driven by strong jewellery demand and platform integration, outperforming industry average e-commerce growth of 6-7%.
Wholesale and Royalty revenue declined 3% to €5 billion, affected by APAC market headwinds and Richemont’s strategic channel rebalancing.
| Channel | Revenue (€m) | Share of Sales | Change YoY |
|---|---|---|---|
| Retail (Direct) | 15.040 | 70% | +6% |
| Online Retail | 1.355 | 6% | +11% |
| Wholesale & Royalty | 5.004 | 24% | -3% |
July 2025: Vhernier unveiled a new High Jewellery collection during Paris Haute Couture Week, marking its first major release under Richemont after its acquisition in October 2024. Relaunches included Abbraccio, Calla, Mon Jeu, and Calla Whip.
FY25:
Autumn 2024: Piaget released Shapes of Extraleganza, shifting its focus toward gender-fluid and sculptural watches and jewellery, aligning with Gen Z values.
1 June 2024: Nicolas Bos, formerly CEO of Van Cleef & Arpels, was appointed Richemont Group CEO.
14 February 2025: Louis Ferla (CEO, Cartier) and Catherine Rénier (CEO, Van Cleef & Arpels) joined the Senior Executive Committee (SEC).
April 2025: Boet Brinkgreve, CEO of Laboratoire de Haute Parfumerie et Beauté, stepped down from the SEC.
March 2025: Cartier premiered its “Trinity 100” campaign, a global visual series exploring identity and relationships, marking the 100th anniversary of the Trinity ring. The campaign launched in Paris, New York, and Seoul through immersive installations.
October 2024 - February 2025: Van Cleef & Arpels extended its L'École des Arts Joailliers programming across Asia and Europe, offering open-access jewellery-making workshops to over 900 students and artisans.
December 2024: Montblanc launched a Wes Anderson-directed global campaign for the 100th anniversary of the Meisterstück pen, with cinematic short films released on YouTube and global cinemas.
June 2025: Alala staged a runway show at the Solomon R. Guggenheim Museum in New York, under designer Pieter Mulier. The show was heralded by the press as a landmark in blending fashion, architecture, and genderless form.
FY25: Watchfinder & Co. launched a cultural content series called “Time Reimagined”, featuring horology historians and collectors discussing vintage watches and sustainable collecting habits.
FY25: Richemont’s high jewellery events across Milan, Dubai, and Tokyo boosted demand and regional visibility, especially for Van Cleef & Arpels and Buccellati.
December 2024 - February 2025: Van Cleef & Arpels launched “de Mains en mains” in Lyon and Clermont-Ferrand to promote jewellery craftsmanship careers in France.
Q1 FY26: Vhernier ran a black-and-white global campaign focused on highlighting colour-based craftsmanship, supported by new boutiques in Paris, Tokyo, and Beverly Hills.
FY25: YNAP, before its divestiture, launched exclusive capsules with Tom Ford, Brunello Cucinelli, and Loro Piana, reinforcing its editorial and curated commerce approach.
Watchfinder expanded into the US market (H2 FY25), introduced concierge buying, and began working with top YouTube creators for vintage watch storytelling.
Richemont's sustainability strategy in FY25 was firmly guided by its centralised ESG framework, increasingly embedded across its Maisons and regions. The company’s approach is aligned with global frameworks such as the GHG Protocol, OECD guidelines, UN Guiding Principles, and the Responsible Jewellery Council standards.
Richemont made significant strides towards its science-based targets (SBTs), aiming to cut absolute Scope 1 and 2 emissions by 46% by 2030 (baseline: 2019). In FY25:
97,7% of electricity came from renewable sources, up from 97,2% in FY24.
21 sites generated on-site solar electricity, marking a +41,3% YoY increase in solar power generation.
Total energy consumption reached 324,3 GWh, with 72% derived from renewable energy sources - primarily hydropower (67%) and EACs (31%).
Richemont also initiated multiple site-specific innovations:
Cartier’s Turin and Valenza sites expanded solar coverage.
Jaeger-LeCoultre switched its Le Sentier site to biomass heating in Oct 2024.
IWC achieved 80% gas consumption reduction at its Schaffhausen site.
GHG Emissions
Scope 3 emissions, which comprise 98.8% of total emissions, rose by 5,9% YoY to 1.729,6 ktCO₂e.
The biggest contributors were purchased goods (72%), capital goods (12%), and logistics (7%).
Richemont’s emphasis on product longevity and repairability continues to stand out:
Richemont identified high-risk raw materials (e.g., palladium, titanium, tungsten) and adopted extended use and responsible sourcing protocols.
FY25 waste generation totalled 15.403 tonnes, of which 59% was diverted from disposal, mainly via recycling.
99% of Tier-1 diamond suppliers were RJC Code of Practices (CoP) certified.
Richemont preemptively banned post-2022 Russian-mined diamonds and maintained its restriction on Zimbabwe diamonds.
Enhanced due diligence included on-site audits, ESG risk assessments, and whistleblower monitoring.
For coloured gemstones, the company continues to grapple with traceability challenges but has established multi-layered supply chain evaluations and long-term.
In FY25, 65,8% of employees in Europe were covered under collective agreements.
A new engagement platform covered 48% of staff, achieving 79% participation.
Programmes like ‘My Performance Journey’ and the Richemont Creative Academy reinforced long-term talent development.
Richemont’s PVC phase-out initiative extended to stores, packaging, and gifting by FY25.
Its Product Restricted Substances List now bans PVC to reinforce compliance and environmental safety.
Fiscal Year 2025 marked a stabilisation phase for Richemont, as the Group navigated macroeconomic volatility, currency pressures, and a recalibration of luxury demand in Asia - particularly China. While growth decelerated to a modest +4% increase in revenue, the Group’s strategic core - its Jewellery Maisons and DTC-driven distribution - remained robust. Operating profit declined by 7%, yet profitability at the Jewellery Maisons held strong with margins nearing 32%. In Q1 FY26, Richemont delivered +6% sales growth, confirming resilience amid uneven market conditions, with Europe, the Americas, and the Middle East & Africa delivering double-digit increases.
Richemont's strategic trajectory centres on heritage luxury excellence, digital streamlining, and organisational renewal. Key 2025 initiatives included:
Acquisition and brand expansion: The Group completed the acquisition of Vhernier, cementing its positioning in avant-garde jewellery, and empowered Gianvito Rossi to expand globally.
YNAP divestment: The long-awaited exit from YNAP was finalised in April 2025. The sale to Mytheresa created LuxExperience, with Richemont retaining a 33% stake, enabling a more capital-light digital strategy.
Leadership transitions: The appointment of Nicolas Bos as Group CEO (June 2024) brought renewed creative focus. February 2025 saw the expansion of the Senior Executive Committee with key talent from Cartier and Van Cleef & Arpels, reinforcing Maison-centric governance.
Retail investments: A record 1.392 directly operated stores now contribute 70% of sales. Flagship openings (e.g., Van Cleef & Arpels Madison Avenue) and re-openings (Cartier, Dubai Mall) signal confidence in retail expansion.
According to the Group’s FY25 commentary and Q1 FY26 disclosures, Richemont's medium-term outlook remains cautiously optimistic:
Geographic rebalancing: While Asia, particularly China, remains a challenge, growth has re-accelerated across Europe, the Americas, and the Middle East. Richemont is actively building a balanced and tailored regional presence
to mitigate future geographic shocks.
Category evolution: The Jewellery Maisons are expected to remain the cornerstone of growth, supported by product innovation and flagship events (e.g., the upcoming Vhernier High Jewellery Collection, July 2025, Haute Couture Week).
Technology and digital transformation: Richemont has initiated a Business-to-Client (B2C) tech strategy to replace the Farfetch ambitions, building data and AI capabilities to streamline CRM, logistics, and omnichannel experiences.
Sustainability and compliance: With traceability, compliance, and supplier engagement cited as key focus areas, Richemont continues to invest in responsible sourcing, green logistics, and product circularity to meet ESG demands.
Compared to broader luxury sector peers:
Richemont’s +4% FY25 growth trails Hermes (+13%) and LVMH Moët Hennessy - Louis Vuitton F&LG (+9%), reflecting segment concentration in watches and Asia dependence.
However, Richemont leads in direct-to-client share (76% vs. sector average ~60%), signalling strong control over brand equity and margins.
While Kering Group saw a double-digit profit decline due to Gucci’s underperformance, Richemont’s diversified Maisons shielded it from deeper erosion.
Cover Image Courtesy: Hypebeast.