From Richemont To LVMH, Titan To Ethos: Decoding The Numbers

Watch groups released their Q3 results recently giving a comprehensive picture of the direction the horology industry is headed towards. We decode these reports and help you understand what this means for the industry.

Richemont

Richemont's shares experienced a 5% drop after reporting a 17% decline in net profits to €1.7 billion for the first half of the 2025 fiscal year. This decline in profit was reportedly due to a combination of slowing demand in the U.S. and higher costs, which have affected the luxury group despite positive performance in other markets, like Asia. While Richemont's European and Asian markets showed growth, the weakening U.S. demand, particularly for hard luxury goods, impacted the overall results.

Group chairman Johann Rupert said the business has demonstrated “sustained resilience” against a challenging macroeconomic and geopolitical backdrop. Group sales were flat on the same period last year at €10.1 billion thanks to a 2% uptick from Richemont’s jewellery maisons Buccellati, Cartier and Van Cleef & Arpels, compensating for a 17% drop from specialist watchmakers including IWC, Panerai and Vacheron Constantin.

Profits were more than halved for watchmakers to €160 million for the period to September 30. American sales were up across watches and jewellery by 10% and Japan grew by 32% at actual exchange rates. Europe and Middle East & Africa were also up by 7% and 15% respectively. Asia Pacific remains the challenge, with group turnover from the territory dropping by 19%. Specialist watchmakers sales to Asia Pacific dropped by 29%; Europe was 8% down and the Americas were flat, year-on-year. The proportion of direct to consumer sales for the specialist watchmakers is stable at 59% of total turnover.

LVMH 

LVMH Moët Hennessy Louis Vuitton recorded revenue of €60.8 billion in the first nine months of 2024, stable on a constant consolidation scope and currency basis despite the current context and a high basis of comparison, following several years of exceptional post-Covid growth. Europe and the United States posted slight growth on a constant consolidation scope and currency basis; Japan continued to achieve double-digit revenue growth; the rest of Asia reflected in particular the strong growth in spending by Chinese customers in Europe and Japan.

The announcement of LVMH’s 10-year global partnership with Formula 1 was a major highlight, in which several of LVMH’s iconic Maisons – in particular Louis Vuitton, Moët Hennessy and TAG Heuer – will be involved starting in 2025. 

Swatch Group 

In its half yearly report, The Swatch group reported net sales of CHF 3 445 million, -14.3% against the previous year at current exchange rates (-10.7% at constant rates). This resulted in negative currency impact of CHF -145 million. The net income for the group stood at CHF 147 million (previous year: CHF 498 million). Whereas the net margin of 4.3% was recorded for the financial year 2024-2025. (previous year: 12.4%). The Operating margin in the Watches & Jewelry segment (without Production) was recorded at 11.0%. 

The Group expects the Chinese market (including Hong Kong SAR and Macau SAR) to remain challenging for the entire luxury goods industry until the end of the year. However, China's potential remains intact. The current situation presents the Group's brands in the lower price segment with excellent opportunities for further growth and market share gains. 

Titan Company Limited 

Indian watchmaking group, Titan Company Limited registered a growth of c.25% YoY in O2FY25. A total of 75 stores (net) were added during the quarter expanding Titan's combined retail network presence to 3,171 stores.

Watches & Wearables domestic business grew c.19% YoY. Revenue growth in Analog was around 25% YoY well supported by both volume and value growths. Premiumization theme continued to be a major driver across brands. Wearables witnessed a revenue decline in low double-digits in a category that is continuing to see significant decline. The Division added 34 new stores (net) in the quarter consisting of 18 stores in Titan World, 14 in Helios and 2 in Fastrack respectively.

Ethos Limited 

Ethos reported a 22.6% growth to Rs 570.4 cr in H1FY25 compared to Rs 465.2 cr in H1FY24. This growth is primarily driven by an increase in the share of luxury and high-luxury segments, a rise in ASP, and volume growth. EBITDA also increased by 22.2% to Rs 98.0 cr in H1 FY25, up from Rs 80.1 cr in H1FY24, reflecting a robust operational performance. EBITDA margin stood at 16.8% inH1 FY25, slightly lower than 16.9% in H1 FY24. This dip was due to additional costs in H1FY25, including forex fluctuations, increased manpower for new store additions, and rent for new stores, which are still in the early stages of generating sales. Specifically, significant currency fluctuations, notably the depreciation of the INR against the CHF, resulted in a forex loss of Rs 4.65 crore. Currency volatility remains an inherent risk in global operations, and  ha a comprehensive risk management framework to address such challenges effectively.

Since April 2024, the company has opened 12 new stores, with plans to open 13 more by the end of FY25, in line with its objective to expand our presence quickly and enter new cities where they currently do not have a presence. Now operational in 26 cities with a total of 72 stores (including 2 Duty-free Stores at Delhi and Bengaluru), since April, the brand has signed up three new exclusive brands, with more brand partnerships in the pipeline to be announced soon. Revenue from exclusive brands contributed 28% of the total revenue in H1 FY25.