Class is permanent: Richemont delivers solid 11% growth despite macro headwinds

Key topics:Richemont posts 11% sales growth, defying a tough global economyJewellery maisons lead growth; watches show signs of recoveryStrong regional mix and €7.6bn net cash underpin resilience.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.In the uncertain world of global finance, where geopolitical tremors and macroeconomic shifts often dominate the headlines, there is something reassuring about the enduring sparkle of Compagnie Financière Richemont. The Swiss-based luxury giant, still guided by the steady hand of South Africa’s own Johann Rupert, has once again defied the gravity of a complex economic environment. The latest trading update, released this morning for the third quarter ended 31 December 2025, is a testament to the resilience of true quality. Investors appreciated the news with the shares jumping 2.5% on the news. While lesser businesses scramble to justify single-digit growth, Richemont has posted a robust 11% increase in sales at constant exchange rates, hitting €6.4 billion for the quarter. This is no mean feat, particularly given the "demanding double-digit comparatives" from the prior year. In plain English? They were already running fast last year; now they’re sprinting.For South African investors who track the dual-listed stock on the JSE, the numbers tell a story of strategic discipline. The disparity between constant-currency growth (11%) and the actual rate (4%) highlights the currency headwinds the group faces—specifically, weaker trading currencies against the reporting Euro. But look past the forex noise, and the operational engine is humming beautifully.The Crown Jewels Shine BrightestAs has often been the case, the heavy lifting was done by the Jewellery Maisons—Cartier, Van Cleef & Arpels, and Buccellati. This division remains the undisputed jewel in the crown, delivering sales of €4.78 billion, up 14% in constant terms..Read more:.Richemont shines as Cartier sales sparkle amid luxury slowdown.In the luxury game, heritage matters. The ability of these brands to command pricing power even as material costs rise is the ultimate economic moat. While other sectors fret over inflation, Richemont’s jewellery arm simply continues to captivate the world’s wealthy.It is also encouraging to see the Specialist Watchmakers division—home to IWC, Jaeger-LeCoultre, and Panerai—ticking up 7% at constant exchange rates. For a while, the watch market has been the trickier sibling to jewellery, so this improvement suggests that the appetite for high horology remains intact.A Global Balancing ActOne of Richemont's key strengths has always been its geographic diversity, which acts as a natural hedge against regional slowdowns. The numbers from the Americas (+14%), Japan (+17%), and the Middle East & Africa (+20%) are spectacular.These regions are clearly picking up the baton. Even Asia Pacific, often the swing factor due to the Chinese market, managed a respectable 6% growth in constant currency, although currency translation dragged the actual reported figure into negative territory (-2%).The retail channel remains the primary driver, up 12%. This aligns perfectly with the group’s long-term strategy of owning the client relationship directly, rather than relying too heavily on wholesale partners. It’s a strategy that requires patience and capital, but as these results show, it pays dividends in margin and brand equity.Fortress Balance SheetPerhaps the most comforting figure for the risk-averse investor is the cash position. Richemont holds a robust net cash balance of €7.6 billion. In an era of high interest rates, where debt can be a silent killer, a fortress balance sheet gives Rupert and his team the optionality to invest, acquire, or weather any storm 2026 might throw their way.Management notes a "complex macroeconomic environment" and "rising material costs" that continue to weigh on margins. These are valid cautions. Yet, looking at the 9-month sales figure of €17 billion—up 10% at constant rates—it is clear that Richemont is navigating these complexities better than most.For the BizNews community, this update is another reminder of why we pay attention to quality. Trends come and go, but class, it seems, is permanent.

Class is permanent: Richemont delivers solid 11% growth despite macro headwinds

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