Switzerland's Richemont kicks off FY26 with strong Q1 sales of $6.2 bn

Region-wise, the growth was led by double digit increases in Europe, the Americas and Middle East and Africa, more than offsetting Japan’s sales decline against high prior-year comparatives; sales in the Asia Pacific region remained stable, Richemont said in a press release.

In Europe, sales grew by 11 per cent, driven by robust demand from local clients and overall positive tourist spend. Almost all main markets in the region saw an increase in sales this quarter, with notable performances in Italy and Germany.

In the Americas, sales growth remained strong at 17 per cent, driven by supportive local demand across all business areas and markets. Sales in the Middle East & Africa region rose by 17 per cent, led by the United Arab Emirates market as well as higher tourist spend.

In Japan, sales declined by 15 per cent against a demanding 59 per cent comparative in the prior-year period, with a strengthening Yen strongly reducing tourist spend, most notably from Chinese clientele, whilst local demand remained positive.

Asia Pacific sales were stable overall versus the prior-year period, as a 7 per cent decline in China, Hong Kong and Macau combined was fully compensated by robust growth in almost all other Asian markets. Sales in Australia and South Korea were up double digits, added the release.

Channel-wise, all distribution channels posted 6 per cent growth at constant exchange rates. Retail contributed €3.73 billion, accounting for 69 per cent of group sales, with growth seen across all regions except Japan. Online retail rose to €323 million, and wholesale and royalty income reached €1.36 billion, driven by increases in the Americas, Europe, and Middle East & Africa.

Richemont maintained a robust net cash position of €7.4 billion (~$8.58 billion) as of June 30, 2025, slightly up from €7.3 billion in the previous year. This follows a €426 million cash outflow related to the sale of YNAP to Mytheresa on April 23, 2025.

ALCHEMPro News Desk (SG)