Compagnie Financière Richemont S.A.

Richemont reported sales of EUR 22.4 billion, up 11% at constant exchange rates and 5% at actual exchange rates. Operating profit was EUR 4.5 billion, up 1% year over year, or up 23% at constant exchange rates, and profit for the year was EUR 3.5 billion versus EUR 2.8 billion last year. Gross profit was EUR 14.4 billion, and gross margin declined 250 basis points to 64.4%; excluding FX, gross margin was down 40 basis points. Cash flow from operating activities was EUR 4.9 billion, free cash flow was EUR 2.8 billion, and year-end net cash was EUR 8.5 billion. For fiscal 2026, the company did not give formal forward guidance, but management said it remains vigilant on macro volatility, especially the Middle East conflict, and will continue investing in distribution, manufacturing and craftsmanship while maintaining cost discipline.

Nicolas Bos said the year showed Richemont’s differentiated positioning, balanced regional footprint and the strength of the Jewellery Maisons’ value proposition. He emphasized long-term brand building through creativity, retail network upgrades, craftsmanship investment and selective expansion in China, while noting the group is staying disciplined on execution and cost control in a volatile environment. His tone was confident but cautious, repeatedly stressing resilience and long-term value creation.

Burkhart Grund walked through the financials in detail, highlighting that Jewellery Maisons generated EUR 16.5 billion of sales, up 14% at constant rates, with operating profit of EUR 5 billion and a 30.5% margin. He said gross profit rose 1% to EUR 14.4 billion, but gross margin fell 250 basis points to 64.4% due to higher gold costs, about EUR 200 million of U.S. duties, targeted buybacks and FX, though measured pricing and mix helped offset part of the pressure. He also noted EUR 164 million of nonrecurring costs, EUR 4.9 billion of operating cash flow, EUR 1 billion of CapEx, EUR 2.8 billion of free cash flow, and net cash of EUR 8.5 billion; the board proposed a CHF 4.30 dividend, including a CHF 1 special dividend.

Analysts pressed management on Jewellery Maisons mix, gold-price sensitivity, U.S. tariffs, China trends, U.S. consumer resilience and whether more simplification or acquisitions were likely. Management said Jewellery growth came from a mix of limited pricing, volume growth in existing and new stores, and some shift toward higher-priced products, but declined to quantify brand-by-brand or gold-price details. On tariffs and margins, Burkhart and Johann Rupert said the group was still assessing the situation and would not forecast next year’s margins; Rupert said tariffs were smaller than the hit from gold and FX, and Richemont had not used price increases to offset tariffs. On China, Nicolas Bos said local brands highlighted demand for newness, but Richemont prefers to renew its own brands rather than buy local labels, while Johann Rupert said simplification is a priority and the group will continue to reduce complexity.