Richemont Reports Q1 Group Sales Increase

Richemont, a luxury goods company, has reported higher fiscal Q1 group sales. Net sales increased by 15% compared to the same period last year. The company's jewelry items segment accounted for 71.6% of sales, followed by luxury watches at 15.4%, and other products at 13%. Net sales were distributed geographically across Switzerland, the UK, Europe, China, Japan, Asia, the US, Americas, and the Middle East and Africa.

Swiss luxury goods company Richemont has reported robust first-quarter (Q1) sales growth, with net sales increasing by 15% compared to the same period last year. The company's jewelry items segment accounted for 71.6% of sales, followed by luxury watches at 15.4%, and other products at 13%. Net sales were distributed geographically across Switzerland, the UK, Europe, China, Japan, Asia, the US, Americas, and the Middle East and Africa [1].

Richemont's Q1 group sales reached EUR 5.4 billion, up by 6% at constant exchange rates and by 3% at actual exchange rates. This growth was achieved in a volatile macroeconomic and geopolitical context [1]. The company's net cash position stood at EUR 7.4 billion after the YNAP deal, reflecting a robust financial position [1].

The jewelry segment continued to show strength, with sales up by 11% at constant exchange rates. Meanwhile, the watch division faced a 7% sequential decline, driven by challenges in the Asia Pacific region and currency pressures [1]. The 'Other' category, including fashion and accessories, saw a 1% decline.

Geographically, Europe saw the highest sales growth, up by 11%, while the US and Asia Pacific regions also contributed to the overall growth [1]. The company's focus on e-commerce and direct-to-consumer channels has been a key driver of growth, with 76% of total sales now coming through these channels [2].

Investors should note that Richemont's stock trades at a 15.8x forward P/E, below its 5-year average of 18x and LVMH's 23x multiple, reflecting investor skepticism over the watch division's recovery. However, Richemont's strong balance sheet and the secular tailwind in jewelry demand make it a compelling investment [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TD06Y:0-richemont-q1-group-sales-at-eur-5-4-bln-up-by-6-at-constant-exchange-rates/
[2] https://www.ainvest.com/news/richemont-strategic-pivot-jewelry-strength-watch-challenges-luxury-recovery-2507/