Jewelry Outshone Bags — Richemont's April–June 2026 Sales Grew 20%, Korea Unit Tops KRW 2 Trillion in Annual Revenue for the First Time
2026-08-27 1:20 PMFashion & Luxury
Overview
Richemont, owner of Cartier and Van Cleef & Arpels, posted 20% constant-currency sales growth in its most recent quarter (April-June 2026). In Richemont's fiscal-year notation that's "FY2027 Q1" — but it's not a future result, just a quarter that has already passed. Separately, Korea unit Richemont Korea posted FY2026 annual revenue of KRW 2.2296 trillion, crossing KRW 2 trillion for the first time. This piece untangles the fiscal-year labeling trap and the actual time gap between the two figures.
Richemont, owner of Cartier and Van Cleef & Arpels, posted 20% constant-currency sales growth in its most recent quarter — April through June 2026. In Richemont's fiscal-year notation, that quarter is labeled "FY2027 Q1," but this isn't a preview of results from the future year 2027. Richemont names its fiscal years after the year in which they end, so the period from April 1, 2026 to March 31, 2027 is called FY2027, and April-June 2026 is its first quarter. Within that quarter, the Jewellery Maisons division grew 24% at constant currency, driving group-wide growth.
Separately, Korea unit Richemont Korea posted revenue of KRW 2.2296 trillion for its fiscal year ended March 2026 (FY2026), crossing the KRW 2 trillion mark for the first time. Operating profit rose 40.4% to KRW 182.7 billion, and the operating margin improved to 8.2%. The global group's latest quarter and the Korean unit's annual results cover different periods and different business functions, so they cannot be directly linked. Still, it's worth noting that recently released data separately confirms strong growth in the global jewelry business and strong growth at the Korean distribution unit.
Cartier, the flagship Jewellery Maisons brand behind Richemont's latest-quarter growth
Why Is 2026 Being Reported as "FY2027 Q1"?
The cover page of Richemont's official results release reads "FY27 Q1 Sales" alongside "Quarter ended 30 June 2026" — in other words, the quarter ended June 30, 2026. It was published on July 15, 2026. So the figures Richemont reported are not results for January-March 2027; they're results for a quarter that has already passed, April 1 through June 30, 2026.
The confusion arises because Richemont names its fiscal year after the year it ends in, not the year it begins in. Each Richemont fiscal year runs from April 1 to March 31 of the following year.
Richemont label
Actual calendar period
FY2026 (full year)
April 1, 2025 – March 31, 2026
FY2027 Q1
April 1 – June 30, 2026
FY2027 Q2
July 1 – September 30, 2026
FY2027 Q3
October 1 – December 31, 2026
FY2027 Q4
January 1 – March 31, 2027
So writing "Richemont's Q1 2027" on its own can be misread as results for January-March 2027. The accurate phrasing is "FY2027 Q1, which falls in April-June 2026." From here on, for readability, this piece refers to the period by its actual calendar dates — "April-June 2026 results." Richemont's next release, FY2027 first-half results, is scheduled for November 13, 2026, so as of August 27, 2026, the most recent quarterly data available is this FY2027 Q1 (April-June 2026).
Richemont's Latest Quarter — Sales Up 20%, Jewelry Up 24%
Richemont's April-June 2026 revenue came to €6.329 billion, up 17% at actual exchange rates and 20% at constant currency versus the same period a year earlier. Every business division grew, with the Jewellery Maisons division — Cartier, Van Cleef & Arpels, Buccellati and Vhernier — posting the strongest increase.
Division
Revenue
Actual-currency growth
Constant-currency growth
Jewellery Maisons
€4.732 billion
+21%
+24%
Specialist Watchmakers
€873 million
+6%
+8%
Other (fashion & accessories, etc.)
€724 million
+7%
+9%
Total
€6.329 billion
+17%
+20%
The growth base was broad across regions too. At constant currency, growth was 27% in the Americas, 36% in Japan, 21% in Asia Pacific, 11% in Europe, and 3% in the Middle East and Africa. By distribution channel, retail grew 24%, online retail grew 18%, and wholesale plus royalty income grew 9%. This wasn't growth concentrated in one region or channel — it was broad-based across regions and channels, with jewelry at the center.
The Specialist Watchmakers division trailed Jewellery Maisons on both growth and margin
That said, this is a quarterly sales update, so operating profit and net income were not disclosed. How much of the strong revenue growth in Jewellery Maisons translated into profit growth for April-June 2026 will only be confirmed when Richemont reports FY2027 first-half results in November 2026.
The Acceleration Began Mid-FY2026
This 20% growth didn't appear out of nowhere. Lined up by quarter, the constant-currency growth trend shows a clear acceleration.
Quarter
Actual period
Group sales growth (constant currency)
Jewellery Maisons growth (constant currency)
FY2026 Q1
April-June 2025
+6%
—
FY2026 Q2
July-September 2025
+14%
+17%
FY2026 Q4
January-March 2026
+13%
—
FY2027 Q1
April-June 2026
+20%
+24%
Jewellery Maisons growth also widened from 17% in FY2026 Q2 to 24% in the latest quarter. Other divisions turned positive as of FY2026 Q2 too — at constant currency, Specialist Watchmakers grew 3% and the Other division grew 6% that quarter. Cumulative first-half (April-September 2025) operating margins at the time showed a wide gap: 32.8% for Jewellery Maisons versus 3.2% for Specialist Watchmakers — note that this margin figure is a first-half cumulative number, not a standalone Q2 figure.
Richemont Group, Three Years — Revenue Up, Margin Down
Figures in € million
Fiscal year
Actual period
Revenue
Operating profit
Operating margin
Profit from continuing operations
Discontinued operations
Net profit
FY2024
Apr 2023 – Mar 2024
20,616
4,794
23.3%
3,818
-1,463
2,355
FY2025
Apr 2024 – Mar 2025
21,399
4,467
20.9%
3,762
-1,012
2,750
FY2026
Apr 2025 – Mar 2026
22,420
4,492
20.0%
3,464
+20
3,484
FY2024 revenue was €20.616 billion, up 3% at actual exchange rates and 8% at constant currency. Operating profit fell 5% to €4.794 billion, for a 23.3% operating margin. Profit from continuing operations was €3.818 billion, but a €1.463 billion loss from discontinued operations tied to YNAP (the online luxury platform) dragged final net profit down to €2.355 billion.
FY2025 revenue was €21.399 billion, up 4% at both actual and constant currency. But operating profit fell 7% to €4.467 billion, and the operating margin slipped to 20.9%. Profit from continuing operations was €3.762 billion, and with a €1.012 billion discontinued-operations loss again tied to the YNAP sale, final net profit came to €2.750 billion.
FY2026 revenue was €22.420 billion, up 5% at actual exchange rates and 11% at constant currency. Operating profit rose 1% to €4.492 billion, turning positive after two straight years of decline. Still, the operating margin was 20.0%, down 0.9 percentage points year over year. The company attributed the pressure on profitability to weakness in key trading currencies, higher raw-material costs, and €164 million of non-recurring costs.
FY2026 final net profit rose 27% to €3.484 billion, even as profit from continuing operations actually fell 8% to €3.464 billion. The main reason for the large jump in final net profit wasn't a surge in core-business earnings — it was that the €1.012 billion YNAP-related discontinued-operations loss from the prior year had essentially disappeared in FY2026 (replaced by a small +€20 million). Final net profit alone makes results look sharply improved, but judging core profitability requires looking at continuing-operations profit and the operating margin together.
From FY2024 to FY2026, revenue rose from €20.616 billion to €22.420 billion, an increase of about 8.8%. Operating margin, meanwhile, fell 3.3 percentage points, from 23.3% to 20.0%. The company attributes this to a combination of currency effects, raw-material costs, business mix, distribution and manufacturing-network investment, and non-recurring costs weighing on profitability together.
Richemont Korea — Tops KRW 2 Trillion in Revenue for the First Time
Richemont Korea, like the group, closes its fiscal year in March. But as an unlisted Korean entity, it doesn't publish quarterly results the way the global group does — only an annual audited report. The most recent confirmed figures cover April 1, 2025 through March 31, 2026 (FY2026).
Fiscal year
Actual period
Revenue
YoY
Operating profit
Operating margin
Net profit
FY2024
Apr 2023 – Mar 2024
15,014
+7.4%
1,061
7.1%
~744*
FY2025
Apr 2024 – Mar 2025
17,951
+19.5%
1,301
7.2%
816
FY2026
Apr 2025 – Mar 2026
22,296
+24.2%
1,827
8.2%
~1,189
Figures in KRW 100 million (억원) unless noted otherwise.
* The FY2024 net profit figure of roughly KRW 74.4 billion is not a disclosed absolute figure — it's back-calculated from reporting that FY2025 net profit (KRW 81.6 billion) rose 9.7% year over year.
FY2024 revenue rose 7.4% to KRW 1.5014 trillion, but operating profit actually fell 15.1% to KRW 106.1 billion. In FY2025, revenue grew 19.5% to KRW 1.7951 trillion, operating profit grew 22.6% to KRW 130.1 billion, and net profit came to KRW 81.6 billion. In that same fiscal year, Richemont Korea paid roughly KRW 73.8 billion in dividends to its Swiss parent.
The growth accelerated further in FY2026. Revenue rose 24.2% year over year to KRW 2.2296 trillion, crossing KRW 2 trillion for the first time. Operating profit rose 40.4% to KRW 182.7 billion, and net profit rose 45.7% to roughly KRW 118.9 billion. The operating margin improved from 7.2% to 8.2% — operating profit grew faster than revenue, a sign of operating leverage.
Richemont Korea is reported to operate group brands in Korea including Cartier, Van Cleef & Arpels, Buccellati, Vacheron Constantin, IWC, Jaeger-LeCoultre, Piaget, Panerai, and Montblanc, among others. As of FY2026 it held lease agreements for 119 stores, and spent roughly KRW 236.4 billion on rent and roughly KRW 88.8 billion on advertising. It is a wholly owned subsidiary of Richemont International Holding.
Global Margin Fell, Korean Margin Rose — Why?
Over the past three fiscal years, revenue rose at both the global group and the Korean unit, but their operating margins moved in opposite directions. Richemont's global operating margin fell from 23.3% in FY2024 to 20.0% in FY2026. Richemont Korea's margin rose from 7.1% to 8.2% over the same period. Revenue growth rates diverged sharply too — global revenue grew about 8.8% over the period, while Korean unit revenue grew about 48.5%, from KRW 1.5014 trillion to KRW 2.2296 trillion. In compound annual terms, that's roughly 4.3% globally versus roughly 21.9% in Korea.
This should not, however, be read as the Korean unit outperforming global headquarters. Global consolidated results include brand intellectual property, product development, manufacturing, headquarters functions, and profit from every Maison. Richemont Korea, by contrast, is a local distribution entity handling import, distribution and retail. Its margin is shaped by the purchase price of goods from headquarters, intercompany trading terms, department-store and store rents, advertising spend, inventory, and currency effects. Because the business functions differ, the comparison should center on the direction of change — improving or worsening — rather than the absolute level of the operating margin.
There's also a limit to what can be confirmed: Richemont Korea doesn't disclose revenue by brand or product category. Globally, it's confirmed that Jewellery Maisons drove group growth, up 24% at constant currency in the latest quarter. But how much of Richemont Korea's 24.2% revenue growth came from jewelry brands like Cartier and Van Cleef & Arpels, versus watches or fashion and accessories, cannot be confirmed from public disclosures.
Has Spending Shifted From Bags to Jewelry?
Across recent luxury-sector earnings, jewelry has shown relatively stronger growth than fashion and leather goods. LVMH's Fashion & Leather Goods division returned to organic growth of 1% in Q2 2026, ending seven straight quarters of decline. In the same quarter, LVMH's Watches & Jewelry division grew 11%, while Richemont's Jewellery Maisons grew 24% at constant currency in April-June 2026.
Brand-level divergence shows up in Korea too. Dior Korea's 2025 revenue fell 18.1% to KRW 773.9 billion, and operating profit fell 43.0% to KRW 129.2 billion. Operating profit had already fallen 27.4% in 2024, to KRW 226.6 billion — two straight years of deteriorating profitability. Richemont Korea, by contrast, grew both revenue and operating profit in its fiscal year ended March 2026 (FY2026), by 24.2% and 40.4% respectively.
Still, this doesn't prove that the same consumers cut back on bags and shifted to jewelry. LVMH and Richemont differ in regional revenue mix, customer base, brand portfolio, product pricing and price-increase rates, the share of tourist spending, and comparison-period baselines. Their Korean entities also differ in fiscal-year timing and business structure. What public results can confirm is only that jewelry showed relatively stronger momentum than fashion and leather goods in the most recent quarter. Concluding that direct substitution occurred between categories would require additional data — consumer purchase data and brand-level sales-volume figures — that isn't available here. Strip away the timing gaps and the structural differences between these businesses, and what's left comes down to two things: Jewellery Maisons' strong growth is continuing globally, and the Korean distribution unit grew both its top line and its margin at the same time.
✦RIT's Insights
The first thing RIT noticed in Richemont's results wasn't the "FY2027" label — it was the actual calendar period behind it. Sales growth hit 20% in April-June 2026, and Jewellery Maisons grew 24%, both higher than the group's 14% growth and jewelry's 17% growth in FY2026 Q2 (July-September 2025). What matters most about these numbers, in RIT's view, is that the acceleration wasn't confined to a single quarter — it carried through into the next fiscal year.
For the Korean unit, the profit growth rate stands out more than crossing KRW 2 trillion in revenue. Revenue grew 24.2% while operating profit grew 40.4%. But there's no basis for attributing all of that entirely to jewelry demand or price increases, since brand-level revenue, sales volumes, and same-store growth rates aren't disclosed. This is another point RIT thinks needs further confirmation — rather than filling that gap with assumptions, it's more accurate to focus on what can actually be verified: profit grew faster than revenue, and the operating margin improved from 7.2% to 8.2%. When looking at these figures from an investment or finance standpoint, it's important not to compare the global group's and the Korean unit's operating margins side by side as absolute values — a global consolidated entity that includes manufacturing, brand and IP functions recognizes profit differently to begin with than a local distribution subsidiary, so revenue growth, the direction of margin change, inventory, rent and advertising spend, and intercompany trading terms all need to be weighed together. For anyone in department-store or leasing MD roles, it's worth noting that Richemont Korea grew both revenue and operating profit while carrying 119 store leases and substantial rent and advertising costs. But public data alone can't separate same-store sales growth from new-store openings, store expansions, or price-increase effects, so in new-lease or renewal negotiations, per-store sales productivity and category mix should be checked in addition to the headline growth rate.
Recent results do suggest jewelry has shown stronger momentum than fashion and leather goods. But the conclusion that "demand for bags has shifted to jewelry" is still a hypothesis. What can be confirmed right now is a difference in growth speed across categories; confirming an actual shift in consumer spending would require brand-level sales-volume data and customer purchasing-behavior data that aren't available yet. Anyone in luxury retail or MD would do better to treat luxury as several separate categories — jewelry, watches, leather goods, apparel — rather than one single market. Jewelry's growth rate does stand out in recent results, but it's safer to treat that as a difference in recovery speed across product categories and review the portfolio accordingly, rather than to conclude that consumers are directly shifting between categories. Brand strategy teams should watch for the same trap in practice: the profitability gap between Jewellery Maisons and the Specialist Watchmakers division is a useful reference point when reviewing investment priorities, but the lower profitability in watches may reflect different business dynamics than jewelry entirely — inventory adjustment, manufacturing-utilization rates, distribution-network normalization. Rather than funneling investment only into whichever business currently runs the higher margin, brand value and long-term growth potential should be weighed together.
DART electronic disclosure system (dart.fss.or.kr) — Richemont Korea Co., Ltd. audit reports for FY2024–FY2026 (cited by name where a specific filing URL could not be pinpointed)
