Richemont, the Swiss luxury group behind Cartier, Van Cleef & Arpels and several of the world’s most respected watchmakers, has reported a strong first half of its financial year. Yet beneath the impressive figures, its latest results reveal a more nuanced picture: demand for fine jewellery remains substantial, traditional watchmaking is recovering, and the geography of luxury spending continues to evolve.
Published on 13 November 2026, the group’s results cover the six months ended 30 September. Richemont recorded sales of €12.3 billion, representing growth of 16 per cent at actual exchange rates and 17 per cent at constant exchange rates. Operating profit increased by 33 per cent to €3.13 billion, while profit for the period reached €2.53 billion, up 39 per cent on the previous year.
These figures place Richemont among the stronger performers in an international luxury industry that has faced uneven demand, particularly in mainland China. However, the second-quarter figures also suggest that the exceptional momentum enjoyed by fine jewellery earlier in the year is beginning to moderate.
Fine Jewellery Remains the Group’s Strongest Business
Richemont’s Jewellery Maisons remain at the centre of its performance. The division includes Cartier, Van Cleef & Arpels, Buccellati and Vhernier, four houses whose identities are closely associated with established craftsmanship, distinctive design traditions and important private collections.
Combined jewellery sales increased by 18 per cent at actual exchange rates during the first half, or 19 per cent when currency movements are excluded. The second quarter alone delivered constant-currency growth of 14 per cent.
The distinction between the two quarters is important. Reuters reported that jewellery growth had reached 24 per cent in the first quarter before easing to 14 per cent in the second. The latest quarterly figure also fell short of the 16 per cent growth analysts had expected.
This is not a decline in sales. The jewellery business continued to expand at a substantial rate, but its pace of growth was less exceptional than earlier in the year. For investors accustomed to strong results from Cartier and Van Cleef & Arpels, even a moderation in growth was enough to raise questions about the outlook.
Richemont’s management attributed demand to the continuing appeal of established jewellery collections, new product introductions and the value clients place on enduring pieces. The company also emphasised its disciplined approach to pricing despite higher raw-material costs, particularly gold.
Traditional Watchmaking Shows Signs of Recovery
The results were also encouraging for the group’s Specialist Watchmakers. This division includes A. Lange & Söhne, Vacheron Constantin, Jaeger-LeCoultre, IWC Schaffhausen, Piaget, Panerai and Roger Dubuis.
Sales reached approximately €1.7 billion during the six-month period, an increase of 9 per cent at actual exchange rates and 10 per cent at constant rates. Growth accelerated to 12 per cent at constant exchange rates in the second quarter.
Richemont specifically identified Vacheron Constantin, Jaeger-LeCoultre and A. Lange & Söhne as leading contributors during the first half. These are houses whose reputations rest on mechanical expertise, finishing, complicated movements and long-established watchmaking traditions.
The recovery is noteworthy because the specialist watch segment has experienced a more difficult period than fine jewellery. Richemont cautioned that improvement is unlikely to be entirely consistent, particularly while demand in China remains challenging. Nevertheless, the division has now delivered more than a year of growth, according to the company.
For collectors, these results provide a useful indication of the broader environment surrounding traditional Swiss and German watchmaking. They do not reveal the performance of individual references or collections, but they suggest that interest in established watch houses has regained some momentum.
Where Luxury Customers Are Spending
One of the most revealing aspects of the announcement is the geographical distribution of growth. The Americas recorded a 23 per cent increase in sales at constant exchange rates during the first half. Europe advanced by 13 per cent, Asia Pacific by 16 per cent and Japan by an impressive 30 per cent.
The Middle East and Africa were the exception, with sales declining by 2 per cent. Richemont attributed the weaker tourism environment in parts of the region to the ongoing conflict.
Mainland China remains a particularly important consideration. The company described business there as soft but stable, while Hong Kong and Macau showed more positive trends. Their improvement helped support the wider Asia-Pacific performance.
Japan's growth is especially striking. Its 30 per cent increase at constant exchange rates reflects strong demand from both domestic customers and visitors. Europe also benefited from higher spending by local clients and tourists, with notable performances in France and the United Kingdom.
A Shift Away from Dependence on Luxury Tourism
Another significant detail concerns the way customers purchase luxury goods. Richemont said direct-to-client sales, including its retail and online channels, represented 78 per cent of group sales during the first half, compared with 76 per cent in the corresponding period a year earlier.
Chief Executive Nicolas Bos also told Reuters that the group's exposure to tourism-related sales had fallen to approximately 15 per cent of total revenue, around half the level seen before the pandemic.
This suggests a meaningful change in the business model of established luxury houses. Their boutiques remain important destinations in cities such as Paris, Geneva, London, New York and Tokyo, but the companies are increasingly relying on customers who purchase in their own markets rather than on international visitors alone.
For maisons with long-standing relationships with private clients, this can offer a more stable foundation. Jewellery and watches are often considered carefully, purchased for personal milestones or collected over many years. Such purchases are not necessarily dependent on a holiday itinerary or a particular tourist season.
Craftsmanship, Margins and Long-Term Investment
Richemont's financial performance also reflects the economics behind its most established houses. The Jewellery Maisons generated an operating result of €3.2 billion, with an operating margin of 35.3 per cent. Excluding positive one-time items, that margin stood at 33.4 per cent.
The company acknowledged continued pressure from elevated raw-material costs, especially gold. Rather than relying solely on price increases, management emphasised product creativity, craftsmanship and investment in manufacturing capabilities.
This approach is particularly relevant to houses whose reputations depend on the quality of their work. Maintaining experienced artisans, specialist workshops and consistent production standards requires long-term investment. It is not simply a matter of increasing the number of boutiques or introducing more products.
Richemont ended September with a net cash position of €7.7 billion, giving it considerable financial capacity to continue developing its maisons. Its first-half operating profit included €229 million in positive one-time tariff-related items, so the underlying performance should also be considered without that contribution. Excluding those items, operating profit was approximately €2.9 billion.
What the Results Mean for the Luxury World
Richemont's announcement is not evidence that every corner of the luxury market is performing equally well. Nor do group figures establish that every Cartier collection, Patek Philippe reference or specialist watch model is experiencing stronger demand. The results concern a diversified portfolio of businesses and should be interpreted accordingly.
What they do demonstrate is the continuing importance of houses with established identities, recognised craftsmanship and products that retain their appeal beyond seasonal fashion. Fine jewellery remains the group's principal growth engine, while its specialist watchmakers are showing encouraging signs of recovery.
The moderation in jewellery growth deserves attention, particularly as investors become more demanding about future performance. Yet the broader figures remain strong: higher sales, improved profitability and substantial direct relationships with customers across several major markets.
For those who follow the traditional luxury world, the message is clear. The strongest established maisons continue to attract significant demand, but the market is becoming more selective. Heritage and craftsmanship remain valuable assets; sustained success still depends on the ability to preserve them while meeting the expectations of a changing international clientele.