Richemont cites US tariffs, gold costs

Richemont said higher raw-material costs and U.S. duties pressed profit margins even as group sales rose, the Swiss luxury group said in its FY26 results announcement. Group sales were €22.4 billion for the year ended March 31, 2026, up 11% at constant exchange rates, the company reported. ### How large were Richemont’s headline numbers? Group sales of €22.4 billion were reported for the year to March 31, 2026, with operating profit of €4.5 billion and a 20.0% operating margin, according to the company’s results statement. Richemont also said profit for the year rose to about €3.5 billion and that net cash stood at €8.5 billion. (richemont.com) ### What did the company say about tariffs and gold? Chairman Johann Rupert said the group had been “stress‑tested” by currency moves, higher raw material costs and the “first impact of additional U.S. duties,” language repeated in Richemont’s commentary accompanying the results. The company singled out rising gold prices and additional U.S. tariffs as contributors to compressed gross and operating margins. (richemont.com) ### Which businesses felt the pressure most? Richemont reported that Jewellery Maisons — including Cartier, Van Cleef & Arpels, Buccellati and Vhernier — delivered double‑digit growth and a 30.5% operating margin, while Specialist Watchmakers posted a 3.4% operating margin for the year. The company said higher gold costs and tariff effects weighed more heavily on jewelry margins overall. (nationaljeweler.com) ### How is Richemont responding to the cost squeeze? Richemont said it has applied “balanced and targeted” price increases in some markets and is exercising cost discipline and operational controls to offset higher input costs. The annual statement also flagged continued investment in Maisons’ long‑term growth and proposed an ordinary dividend of CHF 3.30 plus a special dividend of CHF 1.00. (richemont.com) ### What are analysts and market watchers saying? Kepler Cheuvreux analyst Jon Cox has said the combination of currency moves, rising gold and tariff pressures makes it difficult for high‑end jewelry players to fully protect margins, a view echoed in sector coverage. Other brokers cited by market reports highlighted Richemont’s relative resilience driven by jewelry sales, but flagged margin sensitivity to gold and U.S. trade measures. (nationaljeweler.com) ### What happens next for investors and customers? Richemont will publish its full FY26 results presentation and host an investor webcast on May 22, 2026, with slides and the chairman’s commentary available on the company’s investor portal. The company’s announced dividend payments and any subsequent price adjustments by its Maisons will be the next concrete milestones for investors and retail customers to watch. (richemont.com) (cpp-luxury.com)