Richemont’s Specialist Watchmakers saw sales dropped by 13% for the 2025 financial year ended March 31, although the group says the rate of decline slowed in the second six months of the year, and there was growth in the Americas.
The drop in sales, blamed mainly on a slowdown in China and Hong Kong, had a significant impact on production and fixed operating cost absorption, the company disclosed, leading to an operating margin of just 5.3%.
The margin from watches compares with what Richemont describes as a “solid” 32% margin from its Jewelry Maisons — Cartier, Van Cleef & Arpels, Buccellati and Vhernier — on sales of €15.3 billion; up 8% year-on-year.
The group’s share price rose by over 6% in this morning’s trading.
Richemont’s Specialist Watchmaker operation, home to A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis, and Vacheron Constantin, is currently without a leader.
Its former head, Jerome Lambert, took over as CEO of Jaeger-LeCoultre in April and has not been replaced.
Richemont’s 2025 financial year began with a major reshuffle of its senior team announced in June 2024.
Nicolas Bos, previously chief executive of Van Cleef & Arpels, was promoted to the newly re-established role of chief executive officer for all of Richemont.
Louis Ferla, CEO of Vacheron Constantin, took over from Cyrille Vigneron, who retired after eight successful years as head of Cartier.
Catherine Rénier, then CEO of Jaeger-LeCoultre, moved to the top job at Van Cleef & Arpels.
“With a renewed leadership team and governance structure, the completion of seamless management transitions across several maisons, and our teams of talented professionals committed to creativity and innovation, we are well-positioned to guide Richemont through its next phase of development,” says Richemont chairman Johann Rupert.
Full year sales for all of Richemont rose by 4% to €21.4 billion. Europe grew by 11% at constant exchange rates, and accounted for 23% of sales, Asia Pacific (excluding Japan) declined by 13%, but is still the group’s largest market, with one-third of all sales. The Americas region is closing-in fast, having grown by 15% and now delivers 25% of global revenue.
Business through retail partners continues to decline, and now delivers 24% of sales. 70% of transactions are now through directly-owned Richemont brand stores and 6% online.
Zooming in on just the specialist watchmakers, wholesale still accounts for 40% of revenue.