Core Viewpoint - Richemont reported strong sales growth of 11% at constant exchange rates for the third quarter ended 31 December 2025, driven by robust performance across all regions and business areas [2][5][7]. Sales Performance - Total sales for the quarter reached €6.4 billion, reflecting an 11% increase at constant exchange rates and a 4% increase at actual rates [7]. - Sales by region showed significant growth: - Europe: €1.55 billion, up 8% at constant rates [3] - Asia Pacific: €1.87 billion, up 6% at constant rates [3] - Americas: €1.74 billion, up 14% at constant rates [3] - Japan: €632 million, up 17% at constant rates [3] - Middle East & Africa: €607 million, up 20% at constant rates [3] Distribution Channels - Retail sales grew by 12%, accounting for 72% of total group sales, while wholesale sales increased by 9% [9][7]. - Online retail sales rose by 5%, primarily driven by the Jewellery Maisons [9]. Business Areas - Jewellery Maisons achieved a 14% increase in sales, with strong performances across all channels and regions [10]. - Specialist Watchmakers recorded a 7% increase in sales, marking a second consecutive positive quarter [10]. - The "Other" business area, which includes Fashion & Accessories Maisons, saw stable sales with a 3% increase [10]. Financial Position - The group reported a net cash position of €7.6 billion as of 31 December 2025, slightly down from €7.9 billion in the previous year [11].

Core Insights - The Canadian retail sector is experiencing muted overall sales growth, with jewellery and related categories outperforming the broader market [1][2][3] Retail Performance Overview - Overall Canadian retail sales saw a minimal year-on-year increase of 2.4% in October 2025, with a month-on-month rise of 4.3% [2] - The slow growth is attributed to cautious consumer sentiment and macroeconomic challenges, with expectations for partial recovery in 2025 and gradual strengthening through 2026 [3] Jewellery Sector Analysis - The jewellery segment reported a significant year-on-year growth of 12.8% and a month-on-month increase of 5.3% in October 2025, indicating strong demand for premium goods [4] - Revenue for Canadian jewellery stores was estimated at approximately C$3.6 billion in 2025, despite a slight decline over the past five years, highlighting structural market shifts [5] Retail Challenges - There has been a decline in foot traffic in retail stores through October 2025, indicating a shift towards reliance on conversion rates and basket size for sales [6] - The lack of updated online traffic data for the jewellery segment limits the ability to analyze e-commerce performance effectively [7]

Core Insights - Watches of Switzerland (WOSGF) operates in the luxury watch and jewellery retail sector, facing challenges related to tariffs and market conditions [1] Company Overview - WOSGF is a family of retailers specializing in luxury watches and jewellery [1] - The company has been analyzed in the context of market fears regarding tariffs [1] Investment Approach - The investment philosophy emphasizes long-term value investing, focusing on undervalued quality businesses with strong fundamentals [1] - The approach is influenced by renowned investor Warren Buffett, prioritizing companies with solid business models and sustainable growth [1]

Core Insights - Pandora, the world's largest jewellery brand by volume, anticipates intense competition this Black Friday as retailers strive to attract consumers with discounts amid low consumer confidence [1] Company Summary - Pandora is preparing for a challenging retail environment during the upcoming Black Friday, indicating that the brand is aware of the competitive landscape and the need for strategic pricing [1] Industry Summary - The jewellery retail sector is expected to experience heightened competition as various retailers implement aggressive discounting strategies to entice shoppers, reflecting broader trends of weak consumer confidence in the market [1]

Core Insights - The Group demonstrated remarkable resilience in the first half of FY2026, delivering solid results supported by improved consumer sentiment and a revival in jewellery spending across key markets [1] - Steady progress was made in brand transformation, as well as store and product optimisation during the period [1]

Core Points - Richemont has published its interim report for the six-month period ending 30 September 2025, which is available for download on its website [1] - The report includes unaudited condensed interim consolidated financial statements and reflects information from a prior results announcement made on 14 November 2025 [1] - Richemont no longer prints its interim report in accordance with stock exchange regulations in Switzerland and South Africa [2] Company Overview - Richemont is focused on crafting the future with a unique portfolio of prestigious Maisons known for their craftsmanship and creativity [3] - The company's ambition is to nurture its Maisons and businesses for sustainable growth and prosperity over the long term [3] Business Segments - Richemont operates in three main business areas: - Jewellery Maisons, which include Buccellati, Cartier, Van Cleef & Arpels, and Vhernier [4] - Specialist Watchmakers, including A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis, and Vacheron Constantin [4] - Other, primarily Fashion & Accessories Maisons, such as Alaïa, Chloé, Delvaux, dunhill, G/FORE, Gianvito Rossi, Montblanc, Peter Millar, Purdey, Serapian, TimeVallée, and Watchfinder & Co [4]

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]

Economic Growth and Consumer Demand - The economy is expected to grow at about 7% in the second quarter, supported by a spending surge following the implementation of lower GST rates on September 22 [2][10] - The third quarter is anticipated to be driven by consumer demand, particularly due to the festive and wedding season, with wedding-related expenditures estimated at ₹4.5-5 lakh crore [10][12] - Urban consumption has shown signs of recovery due to tax cuts, although it has been weak since last year [10][12] GST Impact and Economic Indicators - GST collections rose 4.6% year-on-year in October, reaching a five-month high of ₹1.96 lakh crore, indicating robust domestic demand [6][12] - The HSBC Manufacturing Purchasing Managers' Index (PMI) increased to 59.2 in October, reflecting strong domestic demand post-GST cuts [6][12] - Bank credit rose 11.5% year-on-year in mid-October, suggesting strong traction at the start of the festive season [12] Automotive and Consumer Durables Market - Approximately 470,000 cars, sedans, and SUVs were sold in October, marking a 17% increase from the previous year [7][12] - The waiting period for consumer durables has increased due to heightened demand, with estimates suggesting it may take 45 days for supply to normalize [7][12] Rural vs Urban Demand - Rural demand continues to support India's growth, with economists optimistic about its sustainability [9][12] - Urban demand remains a concern due to slower wage growth, which could impact overall consumption momentum [9][10] Global Economic Factors - US tariffs and a global growth slowdown may negatively affect services exports and hiring [11] - However, uncertainties related to tariffs and rising costs abroad could potentially benefit India's services sector through increased offshoring [11]

Trade Relations - Switzerland's gold exports may have influenced the US president's decision to impose more tariffs [1] - Swiss watch and jewelry exports to America are valued at $7 billion in 2024 [1] Economic Factors - The US president may believe Switzerland is wealthy enough to handle increased tariffs [1]

Core Viewpoint - Richemont reported a solid start to the fiscal year 2025, with group sales increasing by 6% at constant exchange rates, driven by strong performance in Europe, the Americas, and the Middle East & Africa, despite challenges in Japan and the Asia Pacific region [2][4][5]. Summary by Region - **Europe**: Sales increased by 11% to €1,295 million, supported by robust local demand and positive tourist spending, particularly in Italy and Germany [3][5]. - **Asia Pacific**: Sales decreased by 4% to €1,731 million, with a notable 7% decline in China, Hong Kong, and Macau, offset by growth in other Asian markets [3][5]. - **Americas**: Sales rose by 17% to €1,335 million, driven by strong local demand across all business areas [3][5]. - **Japan**: Sales fell by 15% to €527 million, impacted by a high comparative from the previous year and reduced tourist spending [3][5]. - **Middle East & Africa**: Sales increased by 17% to €524 million, led by the UAE market and higher tourist spending [3][5]. Summary by Distribution Channel - **Retail**: Sales grew by 6% to €3,734 million, accounting for 69% of group sales, with growth across all regions except Japan [3][6]. - **Online Retail**: Sales increased by 6% to €323 million, reflecting robust growth across almost all regions [3][7]. - **Wholesale and Royalty Income**: Grew by 6% to €1,355 million, driven by solid group sales performance [3][6]. Summary by Business Area - **Jewellery Maisons**: Sales rose by 11% to €3,914 million, marking a third consecutive quarter of double-digit growth [3][8]. - **Specialist Watchmakers**: Sales decreased by 7% to €824 million, primarily due to declines in China, Hong Kong, and Macau [3][8]. - **Other (Fashion & Accessories)**: Sales declined by 1% to €674 million, with notable performances from brands like Peter Millar and Alaïa [3][8]. Financial Position - The group maintained a strong net cash position of €7.4 billion as of 30 June 2025, slightly up from €7.3 billion in the previous year, after accounting for a cash-out related to the sale of YNAP [6][9].