Jewelry Offsets Richemont's Watch Challenges
Richemont’s 2026 financial results show a shift in the group’s revenue composition, with jewelry accounting for more than two‑thirds of sales and nearly all of its profits. Cartier, Van Cleef & Arpels, Buccellati and Vhernier together generated €16.5 billion in sales—about three‑quarters of total group revenue—and delivered €5.0 billion in operating profit at a strong 30.5 % margin, while watches contributed €7.16 billion, representing 32 % of sales but a much smaller share of earnings. The specialist watch division faced modest declines, with sales falling 4 % to €3.1 billion and operating profit dropping to €107 million, a 3.4 % margin. Nevertheless, the second half of the fiscal year saw improvements, particularly in the Americas and among flagship brands such as A. Lange & Söhne, Jaeger‑LeCoultre and Vacheron Constantin. Richemont is streamlining its boutique network, reducing watch‑store count while adding locations for select brands, and plans to sell Baume & Mercier to Damiani, reinforcing its focus on the most desirable and profitable segments.
Buying Time Analysis: This story is important because it highlights how Richemont’s strategic shift toward jewelry, which now drives the majority of its sales and profits, is reshaping the luxury market and mitigating challenges faced by its watchmaking division.
