Swiss luxury group Richemont announced sales were up 13% at constant exchange rates in the fourth quarter of fiscal 2026, ended March 31. For the full year, the conglomerate’s sales increased 11% year-on-year to €22.4 billion; its net cash position stood at €8.5 billion.

Richemont’s division, which includes Cartier, Van Cleef & Arpels and Buccellati, grew 16% in Q4 — smashing expectations of an 11% uplift and surpassing the previous quarter, when jewelry sales grew 14%. Sales at specialist watchmakers, including Vacheron Constantin and Piaget, grew 2%. ‘Other’ businesses, including fashion brands Chloé and Alaïa, were up 7%, despite current category pressures.

“ Our cash flow this year was dramatically up,” Richemont chair Johann Rupert told reporters on a call. “And we’re relatively relaxed about the next 18 to 24 months.”

Jewelry’s supercycle rages on. “Richemont [earnings] confirm the strong demand backdrop for branded luxury jewelry already mapped out by a number of peers,” wrote Jefferies analyst James Grzinic. LVMH’s sales rose 1% in Q1, with its watches and jewelry division up 7%; Kering sales were flat, with jewelry up 22%; and Hermès grew 6%, with jewelry up almost 10%.

By geography, Japan (+28%), the Americas (+18%) and Asia-Pacific (+14%) led growth for Richemont in Q4, while Europe grew 5%. Sales in the Middle East and Africa decreased 3%.

Since February, the luxury sector has been hit hard by the crisis in the Middle East. Richemont is no exception. Asked if business is picking up slightly in the region, Rupert said: “ Until the tourists return, I don’t think anybody can [see] a big uptick. But it’ll come back.  I think we’re going to have to start thinking of the turbulence in the world as the new norm.  We just lay low, try to be conservative, and have a clean balance sheet.”

The decline in the region was more than offset by the group’s stellar performance in the US and Asia. Bernstein luxury goods analyst Luca Solca called the 18% growth in Asia-Pacific “reassuring”. Richemont delivered a strong performance in China, despite rising competition from local brands such as Chinese jeweler Laopu. “Laopu or not, Richemont’s jewelry maisons seem to be reigniting growth in Asia, alleviating fears of local brands taking the upper hand,” Solca wrote.

On the call, Richemont CEO Nicolas Bos stressed the Chinese customers’ appetite for novelty, rather than a shift from international to local brands. “An interesting example for us is Buccellati, which has been developing its footprint in Mainland China and is doing very well — I think it’s considered as a new and exciting brand,” he said. “We see that also at Van Cleef & Arpels and Cartier, with new collections doing very well. So it’s really up to us to make sure that we continue to offer renewal and creativity.”

Some analysts have noted that a renewed wave of creativity in fashion could shift consumer spending away from jewelry and toward ready-to-wear and handbags, potentially weighing on jewelry sector momentum. So far, it has not: “Richemont’s jewelry maisons continue to stay ahead of the industry benchmark [LVMH’s fashion and leather goods division] by 18 percentage points [versus 17 percentage points Q4 2025],” Bernstein’s Solca wrote. LVMH’s fashion sales were down 2% in Q1.

Has Alaïa found its next creative director following the departure of Pieter Mulier?  ”We’re doing very well at Alaïa currently with the studio,” Bos told press. “And, actually, I want to pay a tribute to what Pieter Mulier did and the way he handled the transition. He was absolutely gracious, keeping the spirit of the brand and ensuring that the transition and the future were in good shape. So we will take our time to see how that unfolds.”

As for the next fiscal year, Citi managing director Thomas Chauvet wrote: “We expect consensus 2027 sales [up 7% to €23.9 billion] to remain unchanged, and EBIT reduced by a low-single-digit percentage, reflecting ongoing cost pressures.”