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Swiss luxury group Richemont announced sales were up 13% at constant exchange rates in the fourth quarter of fiscal 2026, ended March 31. For the full year, the conglomerate\u2019s sales increased 11% year-on-year to \u20ac22.4 billion; its net cash position stood at \u20ac8.5 billion.<\/p>\n
Richemont\u2019s division, which includes Cartier, Van Cleef & Arpels and Buccellati, grew 16% in Q4 \u2014 smashing expectations of an 11% uplift and surpassing the previous quarter<\/a>, when jewelry sales grew 14%. Sales at specialist watchmakers, including Vacheron Constantin and Piaget, grew 2%. \u2018Other\u2019 businesses, including fashion brands Chlo\u00e9 and Ala\u00efa, were up 7%, despite current category pressures.<\/p>\n \u201c\u200aOur cash flow this year was dramatically up,\u201d Richemont chair Johann Rupert told reporters on a call. \u201cAnd we\u2019re relatively relaxed about the next 18 to 24 months.\u201d<\/p>\n Jewelry\u2019s supercycle rages on. \u201cRichemont [earnings] confirm the strong demand backdrop for branded luxury jewelry already mapped out by a number of peers,\u201d wrote Jefferies analyst James Grzinic. LVMH\u2019s sales rose 1% in Q1<\/a>, with its watches and jewelry division up 7%; Kering sales were flat<\/a>, with jewelry up 22%; and Herm\u00e8s grew 6%<\/a>, with jewelry up almost 10%.<\/p>\n By geography, Japan (+28%), the Americas (+18%) and Asia-Pacific (+14%) led growth for Richemont in Q4, while Europe grew 5%. Sales in the Middle East and Africa decreased 3%.<\/p>\n Since February, the luxury sector has been hit hard by the crisis in the Middle East<\/a>. Richemont is no exception. Asked if business is picking up slightly in the region, Rupert said: \u201c\u200aUntil the tourists return, I don\u2019t think anybody can [see] a big uptick. But it\u2019ll come back. \u200aI think we\u2019re going to have to start thinking of the turbulence in the world as the new norm. \u200aWe just lay low, try to be conservative, and have a clean balance sheet.\u201d<\/p>\n The decline in the region was more than offset by the group\u2019s stellar performance in the US and Asia. Bernstein luxury goods analyst Luca Solca called the 18% growth in Asia-Pacific \u201creassuring\u201d. Richemont delivered a strong performance in China, despite rising competition from local brands<\/a> such as Chinese jeweler Laopu. \u201cLaopu or not, Richemont\u2019s jewelry maisons seem to be reigniting growth in Asia, alleviating fears of local brands taking the upper hand,\u201d Solca wrote.<\/p>\n On the call, Richemont CEO Nicolas Bos stressed the Chinese customers\u2019 appetite for novelty, rather than a shift from international to local brands. \u201cAn interesting example for us is Buccellati, which has been developing its footprint in Mainland China and is doing very well \u2014 I think it\u2019s considered as a new and exciting brand,\u201d he said. \u201cWe see that also at Van Cleef & Arpels and Cartier, with new collections doing very well. So it\u2019s really up to us to make sure that we continue to offer renewal and creativity.\u201d<\/p>\n Some analysts have noted that a renewed wave of creativity in fashion could shift consumer spending away from jewelry and toward ready-to-wear and handbags, potentially weighing on jewelry sector momentum. So far, it has not: \u201cRichemont\u2019s jewelry maisons continue to stay ahead of the industry benchmark [LVMH\u2019s fashion and leather goods division] by 18 percentage points [versus 17 percentage points Q4 2025],\u201d Bernstein\u2019s Solca wrote. LVMH\u2019s fashion sales were down 2%<\/a> in Q1.<\/p>\n