Richemont (CFR) H2 2025 earnings summary

Executive summary

• Achieved record sales of €21.4 billion, up 4% year-over-year at actual and constant exchange rates, led by double-digit growth at Jewellery Maisons.

• Operating profit was €4.5 billion, down 7% year-over-year, or 4% excluding FX impacts, including €72 million in non-recurring charges; operating margin was 20.9%.

• Profit from continuing operations was €3.8 billion, down 1% year-over-year; total profit was €2.75 billion after a €1.0 billion loss from discontinued operations.

• Robust net cash position of €8.3 billion, supported by €4.4 billion in operating cash flow; proposed dividend increase to CHF 3.00 per share, up 9%.

• Strategic milestones included the acquisition of Vhernier, integration of Gianvito Rossi, and the sale of YNAP to Mytheresa, resulting in a 33% stake in LuxExperience.

Financial highlights

• Sales reached an all-time high of €21.4 billion, up 4% year-over-year at both actual and constant FX rates.

• Operating profit declined 7% to €4.5 billion, mainly due to higher raw material costs, FX, and €72 million in non-recurring charges.

• Gross profit increased 2% to €14.3 billion; gross margin declined 120 bps to 66.9% due to higher gold costs and FX.

• Free cash flow was €2.2 billion, €0.6 billion lower than prior year, mainly due to higher CapEx.

• Net finance costs improved by €125 million to €53 million.

Outlook and guidance

• Management remains vigilant amid global uncertainties, emphasizing agility, discipline, and a strong balance sheet for sustained value creation.

• Continued investment in distribution, manufacturing, and talent to support long-term growth.

• No specific quantitative guidance provided due to macroeconomic volatility and unpredictable gold prices.