Why Richemont’s Lackluster Earnings Still Deserve Our Attention

Earnings reports from the world’s top luxury players often act as industry barometers. Richemont’s recently released full-year results—late, and unsurprisingly underwhelming—offered little in the way of optimism for China’s faltering hard luxury sector.

While local e-commerce festivals like “520” and global events like Mother’s Day were in full swing—and the earliest “618” pre-sale had already begun—hard luxury felt absent from the conversation. Beauty and sportswear reigned supreme. Watches and jewelry, by contrast, quietly watched from the sidelines.

Richemont’s results reaffirmed what most already suspected: watches aren’t selling, Chinese demand is soft, and global jewelry sales—along with resilience in Western markets—are keeping the business afloat.

The topline numbers looked steady: a 4% increase in sales to €21.4 billion, and net profit up 17%. But operating profit dipped 1%, and margins shrank.<