Richemont (CFR) H1 2025 earnings summary

Executive summary

• Sales reached €10.1 billion, stable at constant exchange rates but down 1% at actual rates amid challenging macroeconomic and geopolitical conditions, with strong growth in the Americas and Japan offsetting a sharp decline in Asia Pacific, especially China.

• Operating profit from continuing operations was €2.2 billion, down 17% year-over-year, mainly due to lower Specialist Watchmakers sales, gross margin erosion, and ongoing investments.

• Net profit fell to €457 million, mainly due to a €1.2 billion non-cash write-down related to the planned sale of YNAP to Mytheresa, with closing expected in H1 2025.

• Strategic developments included the acquisition of Vhernier and agreement to sell YNAP to Mytheresa, with Richemont to receive a 33% stake and provide a €100 million credit facility.

• Leadership changes included new CEO appointments at Group, Cartier, and Van Cleef & Arpels.

Financial highlights

• Sales: €10,077 million (down 1% year-over-year); Gross profit: €6,771 million (down 3%); Gross margin: 67.2% (down 100 bps).

• Operating profit: €2,206 million (down 17%); Operating margin: 21.9% (down 410 bps).

• Profit from continuing operations: €1,729 million (down 20%); Net profit attributable to owners: €458 million.

• Cash flow from operating activities: €1,249 million (down 25%); Free cash flow: €270 million, down €600 million year-over-year.

• Dividend of CHF 2.75 per share paid, totaling €1,710 million.

Outlook and guidance

• Management remains cautious due to ongoing macroeconomic and geopolitical uncertainties, especially in China and the global watch market.

• Confident in the strong positioning of Maisons to deliver sustainable value creation.

• No specific guidance on price increases or short-term trends; focus remains on long-term strategy and adaptability.

• YNAP sale expected to close in H1 2025, with further write-downs possible depending on Mytheresa's share price and other variables.