Richemont’s latest numbers are not only a luxury-goods story. The Johann Rupert-chaired group is also traded on the JSE, giving South African investors direct exposure to its stronger first half.

Richemont reported sales of EUR12.282 billion for the six months ended 30 September 2026, up 16% at actual exchange rates and 17% at constant rates. The comparable period produced sales of EUR10.619 billion.

Operating profit rose 33% to EUR3.129 billion from EUR2.358 billion, while profit for the period increased 39% to EUR2.528 billion. The operating margin widened to 25.5% from 22.2%.

A one-time boost matters

The headline operating result includes EUR229 million of positive tariff-related one-time items. Excluding those items, operating profit was EUR2.9 billion and the operating margin was 23.6%, still 140 basis points above the comparable period.

That distinction matters because it separates the group’s underlying trading performance from a benefit that investors should not automatically treat as recurring.

Richemont said elevated raw-material costs, notably gold, continued to weigh on gross margin. Price increases and a stronger sales mix mostly offset higher production costs, while foreign-exchange movements remained a headwind.

Jewellery leads growth

Sales at the Jewellery Maisons rose 18% at actual rates and 19% at constant rates. The division includes Cartier, Van Cleef & Arpels, Buccellati and Vhernier.

Specialist Watchmakers sales increased 9%, or 10% at constant rates. The division’s operating profit rose to EUR150 million from EUR50 million.

The group’s Other business area, which includes fashion and accessories brands, grew sales by 9% but recorded a EUR12 million operating loss.

Africa was the exception

Richemont recorded double-digit sales growth in most regions, but Middle East and Africa sales declined 2% at both actual and constant exchange rates. The company attributed the regional weakness to the effect of conflict on tourist spending, particularly in the United Arab Emirates.

This is the closest regional disclosure in the results. Richemont did not publish a separate South African sales figure, so the regional decline should not be presented as a measured fall in South African demand.

What JSE investors should note

Richemont’s A shares have their primary listing in Switzerland and a secondary listing on the Johannesburg Stock Exchange. The group also reports headline earnings to comply with South African market practice.

Headline earnings for the period were EUR2.512 billion. Diluted headline earnings per share were EUR4.26, compared with EUR3.00 a year earlier.

The group ended September with net cash of EUR7.729 billion. It generated EUR2.5 billion in operating cash flow and received EUR360 million from selling its Avolta stake.

For South African investors, the immediate takeaway is a stronger group result led by jewellery, with underlying margin improvement even after the one-time tariff benefit is removed. The weaker Middle East and Africa line is a counterweight, but it does not disclose South Africa separately.

Image credit: Cartier store in Paris, 21 December 2013. Photo: Jakub Szypulka/Wikimedia Commons, licensed under CC BY-SA 3.0. Cropped and incorporated into an SBL editorial layout.

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