Richemont has announced financial result for the year ended 31 March 2025 on 16 May. Group sales increased by 4 percent at actual and constant exchange rates to €21.4 billion (around $24.3 billion), led by high single-digit growth at the jewellery maisons over the year. Operating profit came in at €4.5 billion (around $5.1 billion), down by 7 percent at actual rates, or by 4 percent at constant exchange rates.
Jewellery Maisons, including Buccellati, Cartier, Van Cleef & Arpels and Vhernier since October – saw their sales reach €15.3 billion (around $17.4 billion), growing by 8 percent at actual and constant exchange rates. This sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on the group’s profitability. Jewellery Maisons delivered a €4.9 billion (around $5.6 billion) operating result, up 4 percent versus the prior year, corresponding to a solid margin at close to 32 percent.
According to the group, the global watch market experienced a slowdown affecting volumes. This was led by demand weakness in China, with greater resilience of high-end price segments. While the watch market remained subdued in the second half, some improvement was visible outside of China. Richemont’s specialist watchmakers reported a 13-percent decline in sales at actual and constant exchange rates over the year, impacted by their high exposure to Asia Pacific, particularly to China, while the other regions showed resilience. The rate of decline was softer in the second half of the year, with notable growth in the Americas.
While the watch maisons demonstrated discipline on operating expenses, the overall decline in sales had a significant impact on production and fixed operating costs absorption. In addition, with their headquarters and most of the production located in Switzerland, the strengthening Swiss franc weighed on their operating result. Consequently, the specialist watchmakers’ operating result was down to €175 million (around $199 million) for the year, corresponding to a 5.3-percent margin.
28-05-2025
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