Richemont Shares Gain On Higher FY25 Results, Dividend Hike

(RTTNews) - Shares of Richemont SA were gaining around 6 percent in the Swiss trading after the Cartier owner reported higher net profit and sales in its fiscal 2025 on strong Jewellery performance. Meanwhile, earnings from continuing operations was lower than last year amid weak China results. Further, the luxury goods firm declared higher dividend.

Johann Rupert, Chairman, said, "... ongoing global uncertainties will continue to require strong agility and discipline. Richemont has solid foundations for sustained value creation over time, built upon our leading Maisons' unique heritage and innovative craftsmanship, coupled with an increasingly balanced and tailored regional presence that allows us to better connect with and enchant clients. Our long-term perspective, underpinned by a healthy balance sheet, constitutes a proven formula that has delivered seven-fold sales growth over the past 25 years, and remains central to our strategy."

The Board proposed to pay an ordinary dividend of 3.00 Swiss francs per 1 A share, a 9 percent increase in the ordinary dividend over the prior year. The dividend will be payable following the Annual General Meeting scheduled to take place in Geneva on September 10.

In the year, profit attributable to owners of the parent company grew 17 percent to 2.75 billion euros from last year's 2.36 billion euros. Earnings per share reached 4.671 euros, compared to 4.077 euros last year.

The latest results included loss from discontinued operations of 1.01 billion euros, mainly reflecting the write-down of the carrying value of YOOX NET-A-PORTER or YNAP assets in the context of the sale to Mytheresa.

On a continuing operations basis, profit for the year was 3.76 billion euros, down 1 percent from last year's 3.82 billion euros. Earnings per share from continuing operations were 6.388 euros, compared to 6.588 euros last year.

Headline earnings per share were 6.327 euros, compared to 6.365 euros last year.

Further, operating profit fell 7 percent to 4.47 billion euros at actual rates, or by 4 percent at constant exchange rates. Operating margin was 20.9 percent.

Revenue, however, increased 4 percent to 21.40 billion euros from last year's 20.62 billion euros, led by high single-digit growth at the Jewellery Maisons.

Over the year, most regions grew at double digits at both actual and constant exchange rates, more than offsetting the decline in Asia Pacific, led by China.

Sales in Europe grew 10 percent, and the growth was 16 percent in the Americas, 25 percent in Japan and 15 percent in Middle East & Africa.

Direct to client sales rose further driven by both retail and online, overall representing 76 percent of Group sales.

Jewellery Maisons, comprising Buccellati, Cartier, Van Cleef & Arpels and Vhernier since October, recorded sales of 15.3 billion euros, 8 percent higher than last year.

Specialist Watchmakers reported a 13 percent decline in sales, impacted by their high exposure to Asia Pacific, particularly to China, due to demand weakness.

In Switzerland, Richemont shares were trading at 164.70 Swiss francs, up 6.33 percent.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.