Richemont profit jumps 33% as sales outpace luxury market slowdown

Richemont, owner of Cartier, Van Cleef & Arpels and several luxury watchmakers, reported first-half sales of €12.3 billion, up 17% at constant exchange rates, with second-quarter growth easing to 13% from 20% in the first quarter. Jewelry remained the main growth driver, with sales up 19% for the half and 14% in the latest quarter; specialist watch sales rose 10% for the half. Growth was strongest in Japan and the Americas, while the company’s results stood out against a difficult luxury market. Operating profit climbed 33% to €3.1 billion, but included a €229 million tariff-related one-off; excluding it, profit was €2.9 billion and the operating margin was 23.6%, as higher raw-material costs, particularly gold, pressured underlying margins. Net profit rose 39% to €2.5 billion.