Increased sales in the luxury goods sector, driven by the demand for exquisite jewelry pieces

Richemont Reports Strong Yearly Sales Growth Amid Global Uncertainties

Luxury goods conglomerate Richemont has announced a robust performance for its fiscal year 2025, with total sales reaching €21.4 billion, marking a 4% increase year-over-year.

The company's jewelry brands led the charge, posting an impressive 8%-15.3 billion euros in sales for the year. Notably, sales in Japan saw a significant 25% growth, while Europe witnessed a 10% increase, with standout performances in France, Italy, and Spain.

However, the Asia Pacific region experienced a decline, with sales dropping 13%. This decline was primarily driven by a softening in China due to weak domestic demand and increased mainland Chinese spending abroad. In contrast, the South Korean market led the robust growth in the rest of the Asia Pacific region.

Johann Rupert, Richemont's chairman, hailed fiscal 2025 as a year of progress for the company. Yet, he acknowledged the ongoing global uncertainties, emphasising the need for discipline from Richemont.

The company's strategic focus and strong agility, according to Rupert, have been instrumental in navigating the complex landscape. These attributes were on full display in the second half of fiscal 2025, with a 10% revenue increase in Q3 and a 7% revenue increase in Q4.

In the other division, which includes fashion and accessories brands, sales increased by 7% to €2.8 billion for the year. The specialty watchmaker division, however, experienced a 13% decline to €3.3 billion in sales for the year.

Richemont's long-term perspective, underpinned by a healthy balance sheet, remains central to the company's strategy. This was evident in the company's performance across most regions, where double-digit growth was posted, with the exception of Asia Pacific.

Elsewhere, the Americas saw a 16% year-over-year increase in sales. In the combined region of the Middle East and Africa, sales were up 15% for the year.

Notably, Richemont's new CEO, Nicolas Bos, who replaced Jérôme Lambert at the start of fiscal year 2025, played a significant role in steering the company through this period. The sale of Yoox Net-A-Porter to Mytheresa, which occurred outside of Richemont's fiscal 2025 reporting period, is expected to provide enhanced value propositions and expanded global reach for both companies.

Despite the overall positive performance, the luxury sector is experiencing uneven results, with some companies posting revenue declines. Richemont's strategic focus, discipline, and adaptability are likely to continue serving the company well as it navigates these market dynamics.

Increased sales in the luxury goods sector, driven by the demand for exquisite jewelry pieces