The Tamesis
Swiss luxury goods group Richemont announced that sales in the fourth quarter of fiscal year 2026 ended March 31 increased by 13% at constant exchange rates. The group’s full-year sales increased by 11% year-on-year to 22.4 billion euros; its net cash position was 8.5 billion euros.
Richemont’s division, which includes Cartier, Van Cleef & Arpels and Buccellati, grew 16% in the fourth quarter, beating expectations for an 11% rise and beating the previous quarter’s 14% rise in jewelry sales. Sales of professional watchmakers such as Vacheron Constantin and Piaget increased by 2%. Despite current category pressures, the “other” business, which includes fashion brands Chloé and Alaïa, grew 7%.
“Our cash flow has increased significantly this year,” Richemont Chairman John Rupert told reporters by phone. “We are relatively relaxed about the next 18 to 24 months.”
The jewelry supercycle continues. “The Richemont Group [earnings] Jefferies analyst James Grzinic wrote: “This confirms the strong demand background for branded luxury jewelry that many peers have planned.” LVMH’s first-quarter sales increased by 1%, of which the watch and jewelry division increased by 7%; Kering Group’s sales were flat, and jewelry increased by 22%; Hermès increased by 6%, and jewelry increased by nearly 10%.
By region, Japan (+28%), the Americas (+18%) and Asia Pacific (+14%) led Richemont’s growth in the fourth quarter, while Europe grew 5%. Sales in the Middle East and Africa fell 3%.
Since February, the luxury goods industry has been severely hit by the crisis in the Middle East. Richemont Group is no exception. Asked if business in the area had picked up slightly, Rupert said: “Until the tourists come back, I don’t think anyone can [see] Rise significantly. But it will come back. I think we have to start seeing the turmoil in the world as the new normal. We’re just keeping a low profile, being as conservative as possible and keeping a clean balance sheet. “
The group’s strong performance in the United States and Asia more than offset declines in the region. Bernstein luxury goods analyst Luca Solca called Asia-Pacific’s 18% growth “reassuring.” Richemont’s performance in China remains strong despite growing competition from local brands such as China’s long-established jewelery store. “Established or not, Richemont’s jewelery brands appear to be reigniting growth in Asia, allaying fears that local brands will take over,” Solca wrote.
Richemont CEO Nicolas Bos emphasized on a conference call that Chinese consumers are demanding novelty, rather than switching from international brands to local brands. “An interesting example for us is Buccellati, which has been growing its business in mainland China and is doing very well – I think it’s perceived as a new and exciting brand,” he said. “We see this at Van Cleef & Arpels and Cartier as well, where the new collections are performing really well. So it’s our responsibility to make sure we continue to deliver updates and creativity.”
Some analysts pointed out that a new wave of creativity in the fashion industry may shift consumer spending away from jewelry and toward ready-to-wear and handbags, which may affect the jewelry industry’s development momentum. So far, it hasn’t: “Richeemont’s jewelery brands continue to stay ahead of industry benchmarks [LVMH’s fashion and leather goods division] increased by 18 percentage points [versus 17 percentage points Q4 2025]Bernstein’s Solca writes. LVMH’s fashion sales fell 2% in the first quarter.
Has Alaïa found its next creative director after Pieter Mulier’s departure? “We’re doing very well at Studio Alaïa right now,” Bos told the outlet. “In fact, I want to pay tribute to what Pieter Mulier did and the way he handled the transition. He was very affable, kept the spirit of the brand and made sure the transition and the future were in good shape. So we will take our time and see how things develop.”
As for the next fiscal year, Citi managing director Thomas Chauvet wrote: “We expect sales to be in consensus in 2027 [up 7% to €23.9 billion] Unchanged, EBIT fell by a low-single-digit percentage, reflecting continued cost pressures. “
