Johann Rupert delivered €22.4 billion in Richemont sales and said he is more relaxed about the next two years than ever

Johann Rupert has seen enough economic turbulence in his career to know what resilience actually looks like. The numbers he delivered on May 22 suggest he is looking at it right now.

Richemont, the Swiss luxury group Rupert chairs through the Rupert family's Compagnie Financière Rupert holding company, reported revenue of €22.4 billion ($26 billion) for the fiscal year ended March 31, 2026, an 11% increase at constant exchange rates and a 5% rise at actual exchange rates after adverse currency movements. Net profit climbed 27% to €3.5 billion ($4.1 billion), up from €2.8 billion ($3.2 billion) in the prior year. Operating profit rose 23% at constant rates to €4.5 billion ($5.2 billion), with operating margins expanding despite significant cost pressures from rising gold prices and unfavorable foreign exchange movements.

Rupert said on an analyst call that "our cash flow this year was dramatically up, and we're relatively relaxed about the next 18 to 24 months." He acknowledged the challenge of the environment without dramatizing it. "I think we're going to have to start thinking of the turbulence in the world as the new norm," he said.

The jewelry division was the dominant story. Richemont's jewelry business area, which includes Cartier, Van Cleef and Arpels, Buccellati and Vhernier, generated €16.5 billion ($19.2 billion) in sales, an 8% increase at actual exchange rates and a 14% rise at constant exchange rates. The jewellery maisons experienced strong demand across all geographies, expanding their market share across both jewelry and watch segments, with the Americas region a particularly strong performer, with sales up 8% or 17% at constant rates for the year, driven by a double-digit increase in jewelry.

Direct-to-client sales across the group rose to 77% of total revenue. That shift, led by the jewelry houses prioritizing retail expansion over wholesale, gives Richemont greater control over pricing, brand experience and margin. It also provides a structural buffer against the kind of wholesale channel volatility that has hit some luxury peers during periods of inventory correction.

The headwinds were real and quantifiable. Gold prices rose more than 20% during the fiscal year, sharply increasing manufacturing costs across Richemont's jewelry and watch categories. The Jewelry Maisons implemented measured price increases to mitigate the impact of rising raw material costs. Currency movements further compressed reported results, with the 11% constant-rate sales growth translating to just 5% growth at actual exchange rates.

US tariffs created an additional layer of cost. The company disclosed that heavy US import duties on Swiss goods generated nearly €300 million ($348 million) in additional costs during the year. Richemont has been adjusting shipping routes, inventory planning and tax strategies to reduce future exposure, and Rupert confirmed the company is reviewing potential tax refund opportunities following a recent US Supreme Court ruling that opened new legal avenues.

The watch division lagged. Richemont's specialist watchmakers grew just 1% at constant exchange rates and fell 4% at actual exchange rates, reaching €3.1 billion ($3.6 billion). The Swiss watch market has been under pressure across brands at multiple price points, and even Richemont's high-end watchmakers, including Vacheron Constantin, IWC and Jaeger-LeCoultre, could not fully offset those headwinds.

The exit from Yoox Net-a-Porter provided a cleaner starting point. Profit for the year climbed aided in part by the absence of the Yoox Net-a-Porter write-down recorded previously. Richemont sold the loss-making digital fashion platform to Mytheresa in a deal completed in September 2024, removing a drag on earnings that had weighed on reported results for years and allowing the group's underlying jewelry performance to show through more clearly.

Net cash rose to €8.5 billion ($9.9 billion), underscoring the balance sheet strength Rupert alluded to on the analyst call. Chief executive Nicolas Bos, who took over from Jérôme Lambert in June 2024 after leading Van Cleef and Arpels, has moved quickly to reinforce the group's direct retail presence and sharpen its brand architecture. The results that landed this week are the first full-year numbers on his watch as group CEO.

Rupert's assessment of the year, offered with his characteristic combination of candor and confidence, was brief and clear. "I can assure you we are in better shape now than I can ever remember, from balance sheet through tech, supply chain, everything traditional that we could foresee. We're in great shape," he said.