Richemont shares slide 8% as gold costs offset H1 operating profit jump Navamya Acharya Fri, November 13, 2026 at 2:37 AM EST 3 min read GC=F +0.51% CFR.SW -5.82% GC Investing.com -- Richemont shares tumbled 8% on Friday after the Cartier owner reported a 33% rise in first-half operating profit, with a €229 million tariff-related one-off accounting for nearly a third of the increase and higher gold costs weighing on underlying gross margins.
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Operating profit rose to €3.13 billion, up 38% at constant exchange rates, while the operating margin widened to 25.5% from 22.2% a year earlier. Excluding the one-off, operating profit was €2.9 billion and the margin was 23.6%.
Gross profit increased 18% to €8.17 billion, with the gross margin rising to 66.5% from 65.3%. The tariff-related gain added 190 basis points to the margin; excluding it, the margin fell 70 basis points.
Higher production costs, largely driven by raw material prices, notably gold, were mostly offset by price increases over the past year and a more favourable sales mix.
Sales rose 17% at constant exchange rates and 16% at actual rates to €12.28 billion. Growth slowed to 13% in the second quarter from 20% in the first quarter, compared with 14% in the year-earlier period.
Jewellery sales increased 19% at constant exchange rates to €9.15 billion, with second-quarter growth slowing to 14% from 17% a year earlier, as demand for jewellery and watch collections remained strong. Segment operating profit was €3.23 billion, representing a margin of 35.3%, or 33.4% excluding the one-off.
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Sales at specialist watchmakers rose 10% at constant exchange rates to €1.71 billion, with second-quarter growth of 12%. Operating profit increased to €150 million from €50 million a year earlier.
The Other division reported a 9% increase in sales to €1.43 billion and an operating loss of €12 million, compared with a loss of €42 million a year earlier.
By region, sales rose 23% in the Americas, 30% in Japan, 16% in Asia Pacific and 13% in Europe at constant exchange rates.
Sales fell 2% in the Middle East and Africa, including a 7% decline in the second quarter, as the conflict in the region sharply reduced tourist spending, particularly in the United Arab Emirates.
Sales in China, Hong Kong and Macau combined increased 7%.
Net profit rose 39% to €2.53 billion, equivalent to €4.29 per share.
Net cash stood at €7.73 billion, following operating cash flow of €2.50 billion, a €360 million inflow from the sale of its Avolta stake and a September dividend that included an exceptional CHF 1 per share.
"Whilst we cannot predict what lies ahead, we expect the macroeconomic and geopolitical environment to remain volatile for the foreseeable future," said chairman Johann Rupert in a statement.
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