Richemont (CFR) H2 2026 earnings summary

Executive summary

• Sales reached €22.4 billion, up 11% at constant rates and 5% at actual rates year-over-year, with growth across all business areas, regions, and channels.

• Operating profit was €4.5 billion, including €164 million in non-recurring costs, up 1% at actual FX and 23% at constant FX, with cost discipline offsetting currency and raw material headwinds.

• Profit for the year rose 27% to €3.5 billion, benefiting from the non-recurrence of prior year write-downs.

• Strong net cash position of €8.5 billion, with free cash flow of €2.8 billion, up €0.6 billion year-over-year.

• Board proposes an ordinary dividend of CHF 3.30 and a special dividend of CHF 1.00 per share, both up from the prior year.

Financial highlights

• Gross profit increased 1% to €14.4 billion, with gross margin at 64.4%, down 250 bps due to higher production costs, gold prices, and adverse FX.

• Operating margin was 20.0%, down from 20.9% the previous year.

• Free cash flow was €2.8 billion, up €0.6 billion year-over-year.

• Retail accounted for 71% of sales, online retail 6%, and wholesale 23%; retail channel led growth (+12% constant FX).

• Inventory rotation improved to 17.1 months from 18.6 months.

Outlook and guidance

• Management remains vigilant amid ongoing macroeconomic and geopolitical volatility, especially in the Middle East.

• Focus continues on long-term value creation, disciplined cost management, and selective investment in boutique network, manufacturing, and brand equity.