Richemont (CFR) H1 2026 earnings summary

Executive summary

• Sales reached €10.6 billion for the six months ended 30 September 2025, up 10% at constant rates and 5% at actual rates, with Q2 accelerating to 14% growth at constant rates.

• Operating profit rose 7% to €2.4 billion (24% at constant rates), with a 22.2% operating margin, supported by strong sales and cost discipline.

• Net profit increased to €1.8 billion, reflecting the absence of the prior year's €1.2 billion loss from discontinued operations.

• Net cash position stood at €6.5 billion, with €1.9 billion generated from operating activities.

• All business areas and regions showed positive momentum in Q2, with double-digit growth in Europe, Americas, and Middle East & Africa.

Financial highlights

• Group sales: €10.6bn (+5% actual, +10% constant rates year-over-year), led by Jewellery Maisons (+14% constant rates), with all regions posting double-digit Q2 growth.

• Operating profit: €2.4bn (+7%), operating margin at 22.2% (+30 bps year-over-year).

• Gross profit: €6.9bn (+2%), gross margin at 65.3% (down 190 bps, mainly due to FX and gold costs).

• Free cash flow reached €1bn, up €0.8bn year-over-year.

• Profit from continuing operations was €1.8bn, up 4% year-over-year.

Outlook and guidance

• Management expects continued macroeconomic and geopolitical uncertainty, with external pressures such as currency movements, gold prices, and US duties persisting.

• No short-term sales guidance provided; focus remains on agility, cost discipline, and long-term value creation.

• Anticipates a greater negative impact from U.S. tariffs in H2, with a full-year adverse effect estimated at €0.3 billion if current rates persist.

• Continued investment in brand equity, quality locations, and manufacturing capacity.