Richemont sales rise 16% as jewellery demand lifts first-half profit
The Cartier owner's first-half sales reached EUR12.3 billion. Second-quarter growth slowed from the prior quarter, while a one-time tariff benefit lifted reported profit.
Richemont reported first-half sales of EUR12.3 billion Friday, up 16% at actual exchange rates and 17% at constant exchange rates. Sales in the second quarter rose 13% at constant exchange rates, compared with 20% growth in the first quarter.
The six-month results cover the period ended September 30. Profit for the period rose 39% to about EUR2.5 billion. Reported operating profit increased 33% to EUR3.1 billion.
The operating-profit figure includes EUR229 million of positive, tariff-related one-time items. Excluding those items, operating profit was about EUR2.9 billion and the operating margin was 23.6%, rather than the reported 25.5%. That distinction matters when comparing the headline result with the business's underlying performance.
The group's jewellery businesses, including Cartier and Van Cleef & Arpels, recorded first-half sales growth of 19% at constant exchange rates, or 18% at actual rates. Specialist watchmakers grew 10% at constant rates, or 9% at actual rates.
Richemont said higher raw-material costs, notably gold, remained a pressure on profitability. The results show continued sales growth, but the slower second quarter and one-time profit benefit call for care when reading the headline numbers.
