Richemont has reported a 4% increase in FY25 group sales to €21.4bn (£18.0bn) led by high single-digit increase in its jewellery maisons over the year.
However, the group’s operating profit came in at €4.5bn (£3.79bn), down by 7% at actual rates, or by 4% at constant exchange rates.
Profit for the year from continuing operations also reached €3.8bn (£3.20bn), down by 1%.
Meanwhile, the overall profit for the year amounted to €2.8bn (£2.36bn), up 17%, after taking into account a €1.0bn (£850m) loss for the year from discontinued operations, primarily reflecting the write-down of the carrying value of Yoox Net-A-Porter (‘YNAP’) assets in the context of the sale to Mytheresa.
After a resilient first half, sales performance accelerated in the second part of the year, with a 10% rise in the third quarter followed by +8% in the fourth quarter at actual exchange rates.
Over the year, most regions grew at double digits at both actual and constant exchange rates, more than offsetting the decline in Asia Pacific, led by China, illustrating the value of Richemont’s balanced regional footprint.
Notable growth rates included Europe at +10% to €4.8bn (£4.05bn) , the Americas at +16% €5.2bn (£4.28bn), Japan at +25% €2.18bn (£1.84bn) and Middle East and Africa at +15% to €1.9bn (£1.60bn) (at actual exchange rates.
Direct to client sales rose further driven by both retail and online, overall representing 76% of group sales.
Richemont’s jewellery maisons Buccellati, Cartier, Van Cleef and Arpels and Vhernier since October, saw their sales reach €15.3bn (£12.9bn), growing by 8% at actual and constant exchange rates.
The group stated that the sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on its profitability.
Additionally, jewellery maisons delivered a €4.9bn (£4.1bn) operating result, up 4% versus the prior year, corresponding to a solid margin at close to 32%.
During the year, the company also welcomed Italian jewellery Maison Vhernier as part of Richemont’s Jewellery portfolio.
Johann Rupert, Richemont chairman, said: “Fiscal year 2025 was a year of progress underscoring the Group’s strategic focus amidst a complex, fast-evolving global landscape. Whilst our Specialist Watchmakers’ performance mostly reflected weakness in their largest region, the Group’s performance was robust overall, driven by remarkable growth at our Jewellery Maisons and retail, and improved momentum at our ‘Other’ activities.”
Rupert added: “As I have said before, ongoing global uncertainties will continue to require strong agility and discipline. Richemont has solid foundations for sustained value creation over time, built upon our leading Maisons’ unique heritage and innovative craftsmanship, coupled with an increasingly balanced and tailored regional presence that allows us to better connect with and enchant clients.
“Our long-term perspective, underpinned by a healthy balance sheet, constitutes a proven formula that has delivered seven-fold sales growth over the past 25 years, and remains central to our strategy.”
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