Richemont delivers solid results for the six-month period ended 30 September 2025 with strong sales momentum in Q2

Core Viewpoint - Richemont reported solid financial results for the first half of FY26, with significant sales growth driven by strong demand across all regions and business areas, despite facing macroeconomic challenges [5][6][16] Financial Highlights - Group sales reached €10.6 billion, reflecting a 5% increase at actual exchange rates and a 10% increase at constant rates, with Q2 sales accelerating to +14% at constant rates [4][5][6] - Gross profit was €6.9 billion, up 2% from the previous year, with a gross margin of 65.3%, down 190 basis points [4] - Operating profit increased by 7% to €2.4 billion, resulting in an operating margin of 22.2%, which is an improvement of 30 basis points [4][11] - Profit for the period from continuing operations was €1.8 billion, compared to €1.7 billion in the prior year, with a notable recovery from discontinued operations [4][12] - Earnings per share on a diluted basis were €3.078, significantly higher than €0.779 in the previous year [4] Business Area Performance - Jewellery Maisons saw a 9% increase in sales at actual rates and 14% at constant rates, with Q2 growth at 17% at constant rates, achieving an operating margin of 32.8% [8][11] - Specialist Watchmakers experienced a slower decline in sales, down 6% at actual rates but only 2% at constant rates, with an operating margin of 3.2% [9] - The 'Other' business area reported a 1% decline in sales at actual rates but a 2% increase at constant rates, with a €42 million operating loss [10] Regional Performance - All regions reported double-digit sales growth in Q2 at constant rates, with Europe, the Americas, and the Middle East leading the performance [7][16] - China, Hong Kong, and Macau, along with Japan, returned to growth in Q2, contributing to the overall positive sales momentum [7][16] Cash Flow and Financial Position - Cash flow generated from operating activities was €1.9 billion, an increase of €605 million from the previous year [4][12] - The net cash position stood at €6.5 billion, up €0.4 billion compared to the same period last year [12]