Richemont (CFR) · Q2 2025 results and valuation

At 9.6% growth a year (3-year revenue growth), the model's fair value is $237.99 a share — the stock trades 34% below it. Today's price assumes 4.0% growth a year.

1. Figure

   Sales reached EUR 10.6 billion, up 10% at constant exchange rates, and operating profit rose 24% when excluding the adverse foreign exchange movements.

   Source quote

   “Sales for the period reached EUR 10.6 billion, up by 10% at constant exchange rates and by 5% at actual exchange rates. Richemont delivered solid results in the first half in a complex macroeconomic and geopolitical environment. Operating profit stood at EUR 2.4 billion, up by 7% compared to the prior year period or up by 24%, excluding the significantly adverse foreign exchange movements.”

2. Guidance

   The company expects to recycle inventory into the income statement at current rates to determine the total cost once inventory is sold.

   Source quote

   “But that obviously, once we sell the inventory, we recycle it into the income statement, and that's where we expect overall at current rates, again, current rates, a total cost...”

3. Dropped

   The company expanded its manufacturing assets and completed the acquisition of Vhernier to support growth in its Maisons.

   Source quote

   “strengthening our distribution network, expanding our manufacturing assets and contributing to preserving unique artisan skills. Importantly, we continue to invest in our Maisons existing and future growth. We also delivered on several strategic fronts for the group and notably completed the acquisition of Vhernier.”

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 83% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Maisons have, I think, adjusted to it quite well in the first half, trying to find the right balance between limited price increases, efficiency gains, strong inventory management and strong...”

“Operating profit in the first half increased to EUR 2.4 billion, reflecting the positive contribution from the strong top line growth, combined with effective cost discipline.”

“Indeed, inventories rose, but less than in the prior year period, notably as the Jewellery Maisons experienced strong sales growth.”