Jewelry Outshone Bags — Richemont's April–June 2026 Sales Grew 20%, Korea Unit Tops ₩2 Trillion in Annual Revenue for the First Time

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 ₩2.2296 trillion for its fiscal year ended March 2026 (FY2026), crossing the ₩2 trillion mark for the first time. Operating profit rose 40.4% to ₩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.

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.

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 ₩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	₩1.5014 trillion	+7.4%	₩106.1 billion	7.1%	~₩74.4 billion*
FY2025	Apr 2024 - Mar 2025	₩1.7951 trillion	+19.5%	₩130.1 billion	7.2%	₩81.6 billion
FY2026	Apr 2025 - Mar 2026	₩2.2296 trillion	+24.2%	₩182.7 billion	8.2%	~₩118.9 billion

* The FY2024 net profit figure of roughly ₩74.4 billion is not a disclosed absolute figure — it's back-calculated from reporting that FY2025 net profit (₩81.6 billion) rose 9.7% year over year.

FY2024 revenue rose 7.4% to ₩1.5014 trillion, but operating profit actually fell 15.1% to ₩106.1 billion. In FY2025, revenue grew 19.5% to ₩1.7951 trillion, operating profit grew 22.6% to ₩130.1 billion, and net profit came to ₩81.6 billion. In that same fiscal year, Richemont Korea paid roughly ₩73.8 billion in dividends to its Swiss parent.

The growth accelerated further in FY2026. Revenue rose 24.2% year over year to ₩2.2296 trillion, crossing ₩2 trillion for the first time. Operating profit rose 40.4% to ₩182.7 billion, and net profit rose 45.7% to roughly ₩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 ₩236.4 billion on rent and roughly ₩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 ₩1.5014 trillion to ₩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 ₩773.9 billion, and operating profit fell 43.0% to ₩129.2 billion. Operating profit had already fallen 27.4% in 2024, to ₩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.

Practical Implications

• Luxury retail/MD teams: Rather than treating luxury as a single market, separate momentum by product category — jewelry, watches, leather goods, apparel. Jewelry's growth rate stands out in recent results, but it's more sound to treat this as a difference in recovery speed across categories and use it to review brand portfolios, rather than to conclude that consumers are directly shifting categories.
• Investment/finance teams: Don't compare Richemont's global and Korean operating margins as absolute values. A global consolidated entity that includes manufacturing, brand and IP functions recognizes profit differently from a local distribution subsidiary. Instead, look comprehensively at revenue growth, margin direction, inventory, rent and advertising spend, and intercompany trading terms.
• Department store/leasing MD teams: 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. In new-lease or renewal negotiations, check per-store sales productivity and category mix, not just the headline growth rate.
• Brand strategy teams: The profitability gap between Jewellery Maisons and Specialist Watchmakers is a useful reference point for reviewing investment priorities. But the lower profitability in watches may reflect different strategic circumstances — inventory adjustment, manufacturing-utilization rates, distribution-network normalization — rather than simply weaker brand economics. Rather than concentrating investment only where margins currently run higher, brand value and long-term growth potential should be weighed together.

Conclusion

Richemont's most recent quarterly results are not "results from the future year 2027." The period the company labels FY2027 Q1 is, in actual calendar terms, April 1 through June 30, 2026 — already in the past — and was released on July 15, 2026. Group revenue for that quarter was €6.329 billion, up 20% at constant currency, with Jewellery Maisons up 24%.

At the global annual level, revenue growth and declining profitability appeared side by side. From FY2024 to FY2026, revenue grew about 8.8%, while the operating margin fell from 23.3% to 20.0%. Even the 27% rise in FY2026 final net profit owed more to the disappearance of the YNAP-related discontinued-operations loss than to a surge in core-business earnings.

Richemont Korea, meanwhile, posted FY2026 annual revenue of ₩2.2296 trillion and operating profit of ₩182.7 billion, with its operating margin improving to 8.2%. The global group's latest quarter and the Korean unit's annual results differ in period and business structure, so they can't be tied together as direct cause and effect. Nor can it be confirmed numerically that jewelry was the center of Korea's growth, since Richemont Korea doesn't disclose brand-level revenue. What can be said clearly is this: strong growth continued in the global jewelry business, and the Korean distribution unit posted both high top-line growth and margin improvement at the same time.