Switzerland-based luxury goods conglomerate Richemont has reported group sales of €21.4 billion (approximately $23.97 billion) for the fiscal year ending March 31, 2025, marking a 4 per cent year-over-year (YoY) growth at both actual and constant exchange rates.
Operating and Financial Performance
Operating profit for the year fell by 7 per cent to €4.5 billion, with the operating margin narrowing by 240 basis points to 20.9 per cent. The gross margin also declined by 120 basis points to 66.9 per cent.
The profit from continuing operations slightly dipped by 1 per cent to €3.76 billion. However, losses from discontinued operations, primarily due to a non-cash write-down of Yoox Net-A-Porter (YNAP), improved to €1.01 billion, a notable recovery compared to the €1.3 billion loss recorded in the first half of 2025.
Despite these declines, Richemont posted an overall profit of €2.75 billion (approximately $3.08 billion), up from €2.36 billion in the previous year. Diluted earnings per ‘A’ share / 10 ‘B’ shares rose to €4.671, up from €4.077 in 2024, according to a company press release.
Retail and Regional Sales Performance
Retail sales, which constitute 70 per cent of the group’s total revenue, grew by 6 per cent YoY at actual exchange rates across all regions except the Asia-Pacific market. Online retail sales, excluding those by YNAP, experienced a robust 12 per cent growth. In total, direct-to-client sales accounted for 76 per cent of the group’s revenue.
Wholesale sales, making up 24 per cent of total revenue, declined by 3 per cent compared to the prior year, driven by a downturn in the Asia-Pacific region. However, this decline was partially offset by growth in other regions.
Regionally, most markets achieved double-digit growth in both actual and constant exchange rates, mitigating challenges in Asia-Pacific, particularly in China. Europe saw a 10 per cent increase, the Americas grew by 16 per cent, Japan surged by 25 per cent, and the Middle East & Africa expanded by 15 per cent.
Segment Performance
The company’s fashion and accessories segments demonstrated mixed results. Brands like Alaia continued their strong growth trajectory, while Peter Millar maintained steady momentum. Ready-to-wear sales achieved double-digit growth across various Maisons, with standout performances from Chloe. However, the fashion and accessories segment posted an operating loss of €102 million, reflecting a margin of -3.7 per cent. Excluding targeted inventory provisioning, the segment had a -2 per cent operating margin.
Strategic Developments and Partnerships
Richemont experienced strong sales momentum in the second half of FY 2025, with a 10 per cent increase in Q3 and an 8 per cent rise in Q4 at actual exchange rates. The company also finalized the sale of YNAP to Mytheresa as part of a strategic transaction. Mytheresa held a cash position of €555 million with no financial debt, while Richemont received a 33 per cent stake in LuxExperience—the newly formed entity—effective May 1, 2025. Additionally, Richemont extended a €100 million revolving credit facility to support YNAP’s operations.
Chairman Johann Rupert emphasized the company’s strategic advancements, stating:
“We continued to invest in future growth by further strengthening our distribution network, enhancing our manufacturing capacity, and contributing to the nurturing and preservation of unique artisan skills.”
He further highlighted Richemont’s achievements, including the acquisition of Vhernier and the global expansion of Gianvito Rossi.
“We are also pleased to have found a good home for YNAP, whose strengths Mytheresa will harness to create a new global leader in digital luxury.”
A Vision for the Future
With streamlined leadership and governance, Richemont is poised for its next phase of growth. Rupert expressed optimism despite global uncertainties:
“As I have said before, ongoing global uncertainties will continue to require strong agility and discipline.”
Through its combination of strategic investments, operational improvements, and focus on sustainability, Richemont aims to navigate challenges while maintaining its position as a leader in the luxury goods sector.
