Richemont delivered record annual sales as strong global demand for high-end jewellery continued to outperform weaker luxury watch demand, reinforcing the growing resilience of the group’s flagship jewellery brands amid shifting spending patterns in the global luxury goods market.
The Swiss-based luxury group, controlled by the Rupert family and owner of brands including Cartier and Van Cleef & Arpels, reported sales of €22.4 billion for the year ended March 2026, representing growth of 5% on a reported basis and 11% at constant exchange rates.
The results underline how jewellery has become the dominant profit engine within the global luxury sector as affluent consumers continue prioritising timeless investment pieces over discretionary fashion and watch purchases. Richemont’s jewellery maisons remained the group’s strongest-performing division, with sales increasing 14% at constant exchange rates and operating margins reaching 30.5%.
The division’s performance was supported by sustained demand across all major regions and distribution channels, particularly in the Americas, where double-digit growth persisted throughout the financial year. Luxury spending in the United States has remained relatively resilient despite broader economic uncertainty, supported by high-income consumers and strong wealth creation linked to equity market gains.
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Industry analysts note that jewellery has become increasingly defensive within the luxury market because consumers tend to view premium jewellery as both aspirational purchases and stores of value. Cartier and Van Cleef & Arpels have particularly benefited from sustained demand for iconic collections and limited production models, helping preserve pricing power even as luxury consumption normalises globally following the post-pandemic spending boom.
Operating profit for the group rose 1% to €4.5 billion, with stronger sales growth and tight cost management partially offsetting currency volatility and higher raw material costs, including elevated gold prices. Profit for the year increased 27% to €3.48 billion, while operating cash flow strengthened to €4.88 billion.
Richemont ended the financial year with a substantial net cash position of €8.5 billion, highlighting the strong cash-generating ability of luxury jewellery businesses relative to other discretionary retail sectors. The balance sheet strength has also enabled the group to continue rewarding shareholders through dividends and share repurchase programmes despite uneven trading conditions across parts of the luxury industry.
The company proposed an ordinary dividend of CHF3.30 per share, 10% higher than the previous year, alongside a special dividend of CHF1.00 per share. Richemont also announced a new share buyback programme allowing the repurchase of up to 10 million “A” shares after concluding its previous three-year buyback initiative.
While jewellery continued to outperform, Richemont’s Specialist Watchmakers division remained under pressure. Sales in the segment declined 4% during the year, although management indicated that trading conditions improved during the second half as the business gradually returned to growth.
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The watch division, which includes brands such as IWC, Jaeger-LeCoultre, Panerai and Vacheron Constantin, generated an operating margin of only 3.4%, significantly below the profitability achieved within jewellery. The weaker performance reflects broader softness in the global luxury watch market following several years of exceptional demand growth during and immediately after the pandemic.
Luxury watch demand has moderated globally as higher interest rates, softer Chinese consumer spending and increased caution among aspirational buyers weigh on discretionary purchases. Secondary market prices for high-end watches have also cooled substantially from pandemic-era peaks, reducing speculative demand that previously supported the industry.
China remains a key variable for the luxury sector. Although Richemont achieved growth across all geographic regions, luxury spending in mainland China has slowed meaningfully over the past year amid weaker consumer confidence, ongoing property market stress and slower economic growth. Many global luxury groups have become increasingly reliant on US, Middle Eastern and Japanese consumers to offset softer Chinese demand.
Richemont’s diversified geographic footprint and emphasis on ultra-high-net-worth customers have helped shield the group from some of the volatility affecting broader luxury markets. Analysts note that the company’s positioning at the highest end of the jewellery segment provides greater pricing resilience and lower exposure to middle-income consumer weakness than many fashion-led luxury rivals.
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The group’s “other” business division, which includes fashion and accessories operations, reported a 2% sales decline and an operating loss of €96 million. This reflects ongoing challenges across certain fashion and online luxury retail operations as consumer demand becomes more selective and operating costs remain elevated.
Globally, the luxury goods sector is entering a more moderate growth phase after several years of extraordinary expansion. Bain & Company estimates the global personal luxury goods market remains above €360 billion, although annual growth rates have slowed sharply compared with the post-pandemic rebound period.
Despite softer conditions in watches and selected discretionary categories, Richemont’s latest results reinforce the growing dominance of jewellery within the global luxury hierarchy. The group’s ability to generate strong margins, cash flow and shareholder returns during a period of uneven consumer demand highlights the increasing importance of iconic heritage brands and scarce luxury assets in an evolving global market.