Fashion
Switzerland’s Richemont reports robust H1 as Q2 sales surge 14%
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)
Without seasonal adjustment, this number dropped by 369,000, or 0.8 per cent MoM, with the decrease being a usual seasonal phenomenon.
The seasonally-adjusted number of employed in Germany fell by 14,000 month on month (MoM) in January to 45.5 million, provisional data show.
This number was down by 0.2 per cent YoY in the month.
Around 1.86 million were unemployed in January—a rise of 11.7 per cent YoY.
The unemployment rate rose to 4.2 per cent—a rise of 0.5 pp YoY.
The number of unemployed, at 1.75 million, rose by 0.4 per cent MoM.
In the period from May to December 2025, the number was down by an average of 12,000 MoM.
The number of employed in January 2026 was down by 88,000, or 0.2 per cent, year on year (YoY).
The downward trend in the YoY labour market figures, observed since August 2025, continued, a Destatis release said.
According to the Destatis Labour Force Survey, 1.86 million were unemployed in January 2026—an increase of 195,000, or 11.7 per cent, YoY. The unemployment rate rose to 4.2 per cent—an increase of 0.5 percentage point (pp) YoY.
Adjusted for seasonal and irregular effects, the number of unemployed in January stood at 1.75 million—a MoM increase of 6,000, or 0.4 per cent. The adjusted unemployment rate remained unchanged at 4 per cent.
Fibre2Fashion News Desk (DS)
Activewear sales rose 9 per cent to $3,088 million, while Innerwear sales increased 21 per cent largely due to the acquisition. International sales declined 5 per cent to $240 million.
Gildan Activewear has reported full-year 2025 net sales of $3,619 million, up 11 per cent, supported by HanesBrands integration and growth in Activewear and Innerwear.
Adjusted EPS rose 17 per cent to $3.51, while free cash flow reached $493 million.
The company targets $250 million synergies by 2028, plans Bangladesh Phase 2 expansion, and forecasts 2026 revenue of $6-6.2 billion.
The gross profit increased to $1,130 million and gross margin improved 50 basis points to 31.2 per cent, supported by lower manufacturing and raw material costs alongside favourable pricing, partly offset by tariff pass-through. Adjusted for a $35.4 million inventory fair value step-up related to the transaction, adjusted gross profit reached $1,165 million with adjusted gross margin of 32.2 per cent; the remaining $237 million step-up is expected to flow through cost of sales in 2026, Gildan said in a press release.
Selling, general and administrative (SG&A) expenses were $389 million, while adjusted SG&A rose to $387 million (10.7 per cent of sales) from $308 million (9.4 per cent), reflecting consolidation effects and higher variable compensation. Operating income stood at $620 million (17.1 per cent margin) versus $618 million (18.9 per cent) in 2024, while adjusted operating income increased to $779 million, lifting adjusted operating margin to 21.5 per cent.
Net financial expenses climbed $45 million to $149 million due to acquisition-related borrowing. GAAP diluted EPS from continuing operations was $2.57 compared with $2.46, while adjusted diluted EPS rose 17 per cent to $3.51, benefiting from a lower diluted share base.
Operating cash flow increased to $606 million from $501 million, and free cash flow reached $493 million after capex of $114 million. Year-end net debt was $4,417 million, with leverage at 3.0x net debt to trailing 12-month proforma adjusted EBITDA.
In the fourth quarter (Q4), net sales from continuing operations rose 31.3 per cent to $1,078 million, with operating margin at 9.2 per cent and adjusted operating margin at 20.7 per cent. GAAP diluted EPS declined to $0.32, while adjusted diluted EPS increased to $0.96. Quarterly operating cash flow rose to $336 million and free cash flow to $304 million.
Integration progress is ahead of plan, with expected annual run-rate cost synergies of about $250 million by end-2028, up from the earlier $200 million target. The company plans to close two HanesBrands textile facilities in early 2026 as part of footprint optimisation.
Gildan has initiated a formal sale process for the HanesBrands Australian business, expected to generate approximately $675 million in net sales and $0.21 in diluted EPS in 2026, with proceeds earmarked for debt reduction.
For 2026, excluding HanesBrands Australia, Gildan forecasts revenue of $6-6.2 billion and adjusted diluted EPS of $4.2-4.4, alongside adjusted operating margin of about 20 per cent and free cash flow above $850 million. The company also approved a 10 per cent dividend increase, declaring a quarterly dividend of $0.249 per share.
Looking ahead, Gildan plans to develop a second textile facility within its Bangladesh complex, with initial production targeted for late 2027. From Q1 2026, segment reporting will shift from product categories to Retail and Wholesale to align with its go-to-market structure.
“Our results underscore the impressive execution by our global team whose focus is now on fully capturing the value of our expanded platform. As we look ahead to 2026, we are very excited about the HanesBrands acquisition which doubles our scale, combines iconic brands with our world-class, low-cost, vertically integrated platform, and unlocks a powerful engine for innovation and growth. The integration is well underway, and we now expect to deliver higher than initially targeted run-rate cost synergies reaching approximately $250 million by the end of 2028 with approximately $100 million in 2026,” said Glenn J Chamandy, president and CEO at Gildan Activewear.
Fibre2Fashion News Desk (SG)
CCPIT has approved 119 activities for Chinese enterprises to participate in US-based exhibitions this year; 30 are over by February, CCPIT spokesperson Wang Wenshuai told in a press conference.
It will also utilise its dedicated working group for foreign-funded enterprises, ensuring that the reasonable demands of US-funded enterprises are met, Wang was cited as saying by a state-controlled media outlet.
The China Council for the Promotion of International Trade will facilitate exchanges and collaboration between Chinese and US firms in investment, trade and technology.
It has approved 119 activities for Chinese enterprises to participate in US-based exhibitions this year; 30 are over by February.
It will also utilise its dedicated working group for foreign-funded enterprises to address US firms’ demand.
CCPIT will use events like the Asia-Pacific Economic Co-operation CEO Summit and the B20 business activities during the December G20 Leaders’ Summit as an opportunity to work with all parties, including the US business community, to build consensus, deepen co-operation and promote inclusive, strong and sustainable growth of the Asia-Pacific and global economies, Wang added.
Fibre2Fashion News Desk (DS)
Employment in Germany continues to drop in Jan 2026
Canada’s Gildan posts $3.6 bn 2025 sales, growth supported by Hanes
Harry Styles shares marriage plans amid rumoured romance with Zoe Kravitz
India Us Trade Deal: Fresh look at India-US trade deal? May be ‘rebalanced’ if circumstances change, says Piyush Goyal – The Times of India
Attock Cement’s acquisition approved | The Express Tribune
What are Iran’s ballistic missile capabilities?
-
Business6 days ago
India Us Trade Deal: Fresh look at India-US trade deal? May be ‘rebalanced’ if circumstances change, says Piyush Goyal – The Times of India
-
Politics7 days agoWhat are Iran’s ballistic missile capabilities?
-
Business7 days ago
Attock Cement’s acquisition approved | The Express Tribune
-
Business1 week agoHouseholds set for lower energy bills amid price cap shake-up
-
Politics1 week agoUS arrests ex-Air Force pilot for ‘training’ Chinese military
-
Fashion1 week agoOECD GDP growth slows to 0.3% in Q4 amid mixed trends
-
Fashion7 days agoPolicy easing drives Argentina’s garment import surge in 2025
-
Sports6 days agoLPGA legend shares her feelings about US women’s Olympic wins: ‘Gets me really emotional’