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Switzerland’s Richemont reports robust H1 as Q2 sales surge 14%

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Switzerland’s Richemont reports robust H1 as Q2 sales surge 14%



Switzerland-based luxury goods holding company Richemont has reported a resilient first-half (H1) performance for the six months (6M) ended September 30, 2025, delivering total sales of €10.6 billion (~$12.30 billion), an increase of 10 per cent year-over-year (YoY) at constant exchange rates and 5 per cent YoY at actual rates.

The growth accelerated sharply in the second quarter, with sales rising 14 per cent at constant rates and 8 per cent at actual rates, reflecting broad-based momentum across regions and business areas.

Richemont has delivered sales of €10.6 billion (~$12.30 billion) in H1, an increase of 10 per cent YoY at constant rates, with Q2 accelerating to 14 per cent.
Operating profit rose to €2.4 billion (~$2.78 billion) and net profit reached €1.8 billion.
All regions saw double-digit Q2 gains.
Strong cash flow and solid liquidity supported continued investment despite ongoing macroeconomic pressures.

The group recorded operating profit of €2.4 billion, an increase of 7 per cent at actual exchange rates and 24 per cent at constant rates, resulting in a 22.2 per cent operating margin. Profit for the period surged to €1.8 billion, supported by continued operations and the absence of last year’s €1.2 billion non-cash write-down from discontinued operations. Richemont’s net cash position remained solid at €6.5 billion, bolstered by €1.9 billion in cash flow from operating activities.

After 18 challenging months in the global watch market, the Specialist Watchmakers division posted a slower sales decline of 6 per cent (-2 per cent at constant rates) to €1.6 billion. Q2 delivered encouraging improvement with sales rising 3 per cent at constant rates, even as volatile demand in China and additional US tariffs weighed on performance. Operating margin stood at 3.2 per cent, Richemont said in a press release.

Sales in the ‘Other’ business area were broadly stable, down 1 per cent at actual rates but up 2 per cent at constant rates, with Q2 contributing a 6 per cent rise at constant rates. Fashion & Accessories Maisons, including Alaia, Peter Millar and Chloe, delivered stronger performance, though the segment posted a €42 million operating loss.

All regions registered double-digit growth in Q2 at constant exchange rates. Europe, the Americas, and the Middle East & Africa delivered strong first-half results, while China, Hong Kong, Macau and Japan returned to growth in Q2. Asia Pacific overall remained stable for the half, with South Korea and Australia continuing double-digit momentum.

Direct-to-client sales comprised 76 per cent of total revenue, consistent with last year, while retail sales grew 6 per cent. Wholesale sales increased 5 per cent at actual exchange rates, supported by double-digit gains in Europe, the Americas, and the Middle East & Africa.

The operating cash flow rose 48 per cent to €1.85 billion, supported by profit growth, lower working capital needs and gains from hedging activities. Inventory levels increased to €9.6 billion, reflecting 18.1 months of inventory rotation, but remained manageable. The dividend payout of CHF 3.00 per share accounted for the largest outflow in the period, contributing to a reduction in net cash since March 2025, though the group remains well-capitalised.

Richemont expects the operating environment to remain challenging, with continued geopolitical and economic pressures, elevated material costs and ongoing exchange rate volatility. Despite this, the group remains committed to investing in long-term growth, expanding manufacturing capabilities, and strengthening its distribution network.

Richemont closed the period with momentum in key regions and business areas, reaffirming its confidence in the group’s strategic direction and long-term value creation, added the release.

Fibre2Fashion News Desk (SG)



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Netherlands manufacturing prices fall 1.9% in January

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Netherlands manufacturing prices fall 1.9% in January



Manufacturing output prices in the Netherlands declined further in January 2026, reflecting continued energy-linked cost softness despite a month-on-month (MoM) recovery, according to Statistics Netherlands (CBS). Producer prices for domestically manufactured goods were 1.9 per cent lower year on year (YoY) in January, widening from a 1.4 per cent annual decline recorded in December 2025.

The downward movement remained closely tied to crude oil dynamics, which continue to shape industrial cost structures across energy-intensive sectors. Average North Sea Brent crude prices stood at nearly €55 per barrel in January 2026, representing a drop of more than 27 per cent from a year earlier. In comparison, December prices averaged €52.5 per barrel, marking an annual decline of almost 25 per cent, CBS said in a press release.

Dutch manufacturing output prices fell 1.9 per cent YoY in January 2026, extending December’s decline as lower crude oil costs weighed on industrial pricing.
Brent prices dropped over 27 per cent annually, pulling petroleum derivative prices down 15.8 per cent.
However, producer prices rose 0.9 per cent MoM, supported by export and domestic market gains.

Petroleum-derived products registered a sharper contraction in line with weaker crude benchmarks. Prices for petroleum derivatives fell 15.8 per cent YoY in January, following a 12 per cent decrease in December, underscoring persistent softness in refined energy product pricing.

Despite the annual decline, producer prices showed sequential improvement at the start of the year. Overall manufacturing output prices increased 0.9 per cent in January from the previous month, indicating short-term pricing stabilisation across industrial segments.

The monthly uptick was led by export markets, where prices rose 1.2 per cent, while domestic market prices increased 0.6 per cent. The divergence between YoY declines and MoM gains highlights the continued influence of last year’s elevated energy base alongside emerging signs of near-term price recovery.

Fibre2Fashion News Desk (SG)



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US cotton acreage seen falling to decade low in 2026: CoBank

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US cotton acreage seen falling to decade low in 2026: CoBank



US cotton planted area is projected to decline for a second consecutive year in 2026, with acreage expected to fall to 9 million acres, down 3 per cent year on year and marking the lowest level in more than a decade, according to CoBank analysis. The outlook reflects subdued price competitiveness relative to alternative crops and shifting producer economics ahead of spring planting decisions.

Regional adjustments are anticipated to drive the contraction. Cotton acreage across the southern United States is expected to transition towards soybeans amid improved profitability prospects, while irrigated cotton areas in the Plains are likely to shift towards corn production as producers rebalance crop rotations and manage input cost pressures, CoBank said in an article by Tanner Ehmke and Emmie Noyes.

Slower US cotton export momentum to China, intensifying competition from Brazil and Australia in global markets, and continued substitution by manmade fibres have collectively restrained price recovery, limiting growers’ willingness to expand cotton area.

US cotton planted area is forecast to decline for a second straight year to about 9 million acres in 2026, down 3 per cent year on year, reflecting weak price competitiveness.
Acreage shifts towards soybeans and corn, slower exports to China, rising competition and fibre substitution are weighing on plantings.
Meanwhile, farm support payments are expected to stabilise the overall acreage decline.

Despite the projected decline, policy mechanisms are expected to provide a degree of support. Base acreage payments under farm support programmes are likely to cushion the adjustment, helping stabilise cotton plantings and preventing a sharper contraction in the 2026 season.

Fibre2Fashion News Desk (SG)



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Create Garment Trading Adjudicator: Researchers tell UK govt

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Create Garment Trading Adjudicator: Researchers tell UK govt



Researchers have called on the UK government to establish a Garment Trading Adjudicator to tackle unfair purchasing practices in the fashion supply chain, following new evidence of widespread malpractice in garment manufacturing.

The recommendation follows a survey analysed by researchers from the University of Nottingham and the University of Leicester in collaboration with trade justice charity Transform Trade, which found systemic late payments, last-minute order changes without compensation and post-contract price reductions. Manufacturers reported that such practices shift financial risk from brands and retailers onto suppliers and ultimately workers.

Among respondents, 31 per cent reported order cancellations, while 78 per cent said brands failed to cover costs of last-minute changes to confirmed orders. A further 75 per cent stated prices were not adjusted to reflect minimum wage increases. Additionally, 67 per cent experienced order volumes being reduced without corresponding revisions to unit costs, and 44 per cent faced repeated payment extension requests. Ten per cent reported payments delayed by more than three months beyond agreed terms.

Researchers are urging the UK government to establish a Garment Trading Adjudicator after a survey by the University of Nottingham, University of Leicester and Transform Trade found widespread unfair purchasing practices in UK garment manufacturing.
The study highlights systemic late payments, cancellations and cost pressures affecting manufacturers and workers.

Manufacturers said these pressures had direct workforce consequences, including increased overtime to meet sudden order spikes for 73 per cent of workers, reduced hours following cancellations for 58 per cent, and job terminations for 29 per cent.

The survey also revealed limited confidence in formal dispute mechanisms. Only 22 per cent viewed the legal system as a viable route for redress, and none considered government or multistakeholder initiatives effective. Respondents cited financial and legal barriers, stating that pursuing action against brands was often unaffordable.

Dr Sabina Lawreniuk of the University of Nottingham’s School of Geography said, “Our research shows that current brand purchasing practices directly impact workers, resulting in precarious and insecure work across UK factories. Voluntary codes have proven insufficient. If we are serious about protecting workers and supporting a sustainable UK fashion industry, we need a Garment Trading Adjudicator to enforce fair practices across the sector.”

She added that the findings emphasise the need to rebalance relationships between brands and fashion manufacturers in the UK to support domestic manufacturing, sustainable business models, investment strategies, and to strengthen work and employment in the sector.

Professor Nikolaus Hammer of the University of Leicester also highlighted the importance of rebalancing these relationships to ensure sustainable UK production.

The researchers and Transform Trade said a sector regulator, like the Groceries Code Adjudicator, could help curb unfair purchasing practices and create greater accountability across fashion supply chains.

Fibre2Fashion News Desk (CG)



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