The parent company of Cartier and IWC reports earnings 💡What will investors be looking at in 2026❓

Richemont (CFR.CH), a Swiss luxury goods group (jewelry brands such as Cartier and Van Cleef & Arpels, and   watch manufacturers such as IWC, Jaeger-LeCoultre and Vacheron Constantin) has once again proven its business position, surprising the market with higher results for the period September-December 2025. Sales during this period reached an impressive €6.4 billion, representing an 11% increase at constant exchange rates, significantly beating analysts' forecasts of just 7.4%. Sales results exceeded market expectations thanks to strong global demand for jewelry and continued economic recovery in China, which is the company's second-largest market and a trendsetter in the luxury goods sector (China accounts for less than 20% of the company's sales).

Let us recall that in recent years China has been the main driver of growth in the luxury goods market, but is currently struggling with a crisis in the real estate market and a general weakness in consumer willingness to make discretionary purchases.

However, margins are currently dampening optimism surrounding the company. According to Deutsche Bank analysts, the combination of record high gold prices and a strong Swiss franc is likely to continue and may affect the group's profit forecasts for the next financial year if it is not offset by further price increases. The question of how this will affect consumers remains uncertain. On the one hand, the typical consumer reaction to price increases should be negative, but in the case of Richemont, we are moving in the ultra-premium world, where a higher price, considered synonymous with luxury, does not necessarily lead to a decline in customer interest in the company's products, and, paradoxically, may even increase it, as described by the well-known Vablen effect paradox in economics. 

Key results with forecasts

• Sales at constant exchange rates +11%, forecast +7.47%
• Sales of jewelry stores at fixed exchange rates +14%, forecast +9.47%
• Sales of specialized watch manufacturers at constant exchange rates +7%, forecast -0.12%
• Revenues in Europe at constant exchange rates +8%, forecast +5.25%
• Revenues in America at constant exchange rates +14%, forecast +9.83%
• Revenues in the Asia-Pacific region at constant exchange rates +6%, forecast +4.8%
• Revenues in the Middle East and Africa at constant exchange rates +20%, forecast +14%
• Revenue in Japan at constant exchange rates +17%, forecast +8.36%
• Retail sales at constant exchange rates +12%, forecast +7.5%
• Sales of EUR 6.40 billion, forecast of EUR 6.25 billion
• Jewelry store sales €4.79 billion, forecast €4.68 billion
• Sales of specialist watch manufacturers EUR 872 million, forecast EUR 802.2 million
• Sales in Europe EUR 1.55 billion, forecast EUR 1.53 billion
• Sales in the Asia-Pacific region EUR 1.87 billion, forecast EUR 1.88 billion
• Sales in America EUR 1.74 billion, forecast EUR 1.72 billion
• Sales in Japan EUR 632 million, forecast EUR 590.9 million
• Revenues in the Middle East and Africa region EUR 607 million, forecast EUR 587.5 million
• Retail sales EUR 4.60 billion, forecast EUR 4.55 billion

Richemont's financial report provides the first indications of demand for luxury goods in 2026. LVMH is set to publish its annual results at the end of this month, with Hermes and Kering, owner of Gucci, following in February.

The company's shares remain in a long-term upward trend, despite today's significant decline in value. From a technical perspective, the key support level remains the 50-day EMA (blue curve on the chart), which has not been retested by the supply side for nearly six months.

Source: xStation