Richemont shares gave up early gains on Thursday. With a discount of 1.4 percent, the value did not benefit from new figures. The jewelry and watch group increased sales significantly in the third quarter of the 2025/26 financial year despite a high year-on-year basis and exceeded analysts’ expectations. Once again, business in the jewelry stores was in full swing.
The situation was similar for other stocks in the sector. Swatch drifted into the red after initial gains, while Hermès was just able to stay at the previous day’s level.
Richemont exceeded expectations in the Christmas quarter, the most important of the year, in all regions and even in the watch sector, noted analyst Patrik Schwendimann from Zürcher Kantonalbank (ZKB). At group level, even the highest analyst estimates were beaten.
However, Richemont warned that negative currency effects and increased raw material costs are putting pressure on margins. In view of this headwind, the group needs good sales development in order to be able to achieve the margin expectations in the market, said Schwendimann.
In this context, Deutsche Bank analysts pointed to the effects of the high gold price. Even if there is no further increase, negative effects on margins are to be expected from the 2027 financial year.