Is Richemont the Right Home for Swiss Watchmaking Brands?
Richemont’s jewellery brands delivered strong performance in FY2026, generating €16.5 billion in sales with a 30.5 % operating margin, while its specialist watchmakers lagged, posting €3.1 billion in sales and a modest 3.4 % margin. The group’s growth was driven primarily by the Americas, which recorded 17 % sales growth, and the overall business benefited from robust cash reserves and a focus on retail expansion, especially in key markets such as the United States. Despite a modest 1 % increase in watch sales, the watch division showed signs of stabilization in the second half of the year, and the first quarter of FY2027 reported an 8 % rise in specialist watchmaker sales. Richemont continues to evaluate its portfolio, having sold Baume & Mercier while retaining other iconic brands, and is investing heavily in boutique networks and direct‑to‑consumer channels to sustain growth across both jewellery and watch segments.
Buying Time Analysis: The article highlights Richemont’s divergent performance, showing how its strong jewellery segment funds growth while its watchmakers lag, underscoring the strategic importance of evaluating ownership models and investment focus to sustain profitability in the luxury watch market.
