Table of Contents
Key Points
- Richemont's H1 2024 profits fell 69.63% to $489.95 million, driven by weaker sales in key markets and a significant impairment loss on YNAP.
- Revenue edged down by 1.41 percent to $10.08 billion, while operating costs surged, impacting overall profitability despite resilient revenue.
- Richemont’s assets fell 0.78% to €42.35 billion ($45.4 billion), with equity and retained earnings dropping 3.15% and 8.46%, respectively.
Swiss luxury conglomerate Richemont, led by South African billionaire Johann Rupert, posted a significant drop in profit for the first half of its 2025 fiscal year, as weak sales in Asia, escalating costs, and currency fluctuations weighed on its financial performance.
Richemont’s profit declined nearly 70 percent, falling to €457 million ($490 million) from €1.51 billion ($1.61 billion) in the same period last year, due largely to weaker demand in the Asia-Pacific region and a €1.22 billion ($1.31 billion) impairment linked to the sale of luxury online retailer YNAP.
Richemont's revenue dips amid Asia slowdown
Revenue for the luxury powerhouse, which oversees brands like Cartier and Montblanc, fell slightly by 1.4 percent to €10.08 billion ($13.03 billion), down from €10.22 billion ($13.21 billion) in the prior-year period.
Asia-Pacific saw the sharpest regional decline, dropping 19 percent as demand slowed across key markets like China, Hong Kong, and Macau.
Richemont’s European segment offset some losses, delivering a 4.4 percent gain fueled by tourist spending, while the Americas reported a 10.5 percent increase, primarily driven by local demand. However, elevated operating costs eroded overall profit gains in these regions.
Japan’s contribution to total revenue was down as domestic demand softened, and online retail sales slipped 7 percent, reflecting weaker fashion and accessories demand.
Richemont’s Specialist Watchmakers segment saw a 17 percent decrease in sales, especially in the Asia-Pacific region, whereas the Jewellery Maisons segment showed resilience, posting a 2 percent uptick.
Rupert's Richemont stake is valued at $8.35 billion
Johann Rupert, South Africa’s wealthiest individual, holds a 10.18 percent stake in Richemont, with a controlling 51 percent of voting rights valued at $8.35 billion, according to Bloomberg.
Despite the challenges, Rupert reaffirmed Richemont’s commitment to long-term growth, emphasizing continued investments in brand development to bolster shareholder value amid shifting market conditions.
Total equity dipped by 3.2 percent to €19.98 billion ($21.42 billion), and retained earnings fell by 8.5 percent to €13.53 billion ($14.50 billion). Richemont’s assets declined slightly to €42.35 billion ($45.4 billion), from €42.68 billion ($45.76 billion) in March 2024.
