Richemont Logs 33% Surge in Fiscal First Half Operating Profit; Shares Drop

05:30 AM EST, 11/13/2026 (MT Newswires) -- Shares in Compagnie Financière Richemont (CFR.SW, CFR.JO) declined on Friday, overshadowing a 33% year-over-year jump in operating profit for the fiscal first half, as investors weighed slowing quarterly sales growth and a one-off 229 million-euro tariff-related boost. For the six months ended Sept. 30, the Swiss luxury goods company's operating profit increased to 3.13 billion euros from 2.36 billion euros, the company said in its earnings release for the period. Excluding the one-time benefit, operating profit stood at 2.9 billion euros. Sales increased 17% at constant exchange rates to 12.28 billion euros for the six-month period. However, growth in the second quarter slowed to 13%, compared with a 20% increase in the first quarter. The company's shares were down 5% during early trading in Zurich. "Whilst elevated raw material costs continued to weigh on the gross margin, profitability benefitted from the positive effect of the strong top line expansion," said Richemont Chairman Johann Rupert. Richemont's Jewellery Maisons division, which includes Buccellati, Cartier, Van Cleef & Arpels and Vhernier, recorded an 18% increase in sales to 9.15 billion euros. Sales at its Specialist Watchmakers division rose 9% to 1.71 billion euros, while the Other segment, which includes fashion and accessories, posted 9% growth to 1.43 billion euros. From a geographical standpoint, all regions delivered double-digit sales growth except the Middle East and Africa, where sales declined 2%. Sales in China, Hong Kong and Macau rose 7%, with a "modest" increase in the second quarter despite "persistent softness" in the mainland, Richemont said. Attributable profit for the first half of fiscal 2027 rose to 2.53 billion euros from 1.81 billion euros a year ago.