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The Rupert family’s Swiss-based luxury goods group Richemont has posted record sales for its 2026 financial year, helped by strong demand for its jewellery brands even as its watch business remained strained.The company, which owns brands including Cartier and Van Cleef & Arpels, said sales rose 5% to €22.4bn (R428.3bn) in the year ended March. At constant exchange rates, sales were up 11%, it said.The group’s jewellery maisons remained its strongest business, with sales rising 14% at constant exchange rates, delivering an operating margin of 30.5%.Richemont said growth came from all business areas, regions and sales channels, with double-digit growth in the Americas throughout the year.Operating profit rose 1% to €4.5bn (R86bn). The group said stronger sales and cost discipline helped soften the impact of weaker trading currencies and higher raw material costs.Profit for the year increased 27% to €3.48bn (R66.5bn). The group generated €4.88bn (R93.3bn) in cash from operating activities and ended the year with a net cash position of €8.5bn (R162.5bn).The group’s Specialist Watchmakers division had a weaker year. Sales in the division fell 4%, though the company said the business returned to growth in the second half of the year. Operating margin for the division was 3.4%.Sales in the group’s other business area declined 2%, while the division recorded an operating loss of €96m (R1.8bn).Richemont proposed an ordinary shareholder payout of CHF3.30 per share, up 10% from last year. It also announced a special dividend of CHF1.00 per share.Richemont said its three-year share buyback programme announced on May 2023 expired on May 21 this year. Under the programme almost 2.2-million “A” shares, representing 0.37% of the capital were repurchased.It has announced a new programme starting on May 26 to buy back up to 10-million “A” shares, representing 1.69% of its capital and 0.93% of voting rights. Business Day
