As at 13 November 2025

Executive Summary

Key highlights
In this report, we review CFR’s 1H26 results, released in November 2025, and evaluate their implications on our view.
Financial results at a glance:
Group results:

• Group revenue was up 5% with Q2 seeing a growth of 14% caused by growth across the regions of operations.
• Gross profit was up 2% in the period, with the margin contracting by 190bps, led by increased raw material costs.
• Operating profit was up 7% with the margin expanding by 30bps, driven by cost control in operations to offset raw material cost pressure along with forex impacts.
• EPS increased from €0.78 to €3.08 (+295%), driven by a profit from continuing operations during this period compared to a large loss in the prior period.

Results per geographic region:

• Europe was up 19% driven by local demand and some positive contributions from tourist spending.
• Asia Pacific was flat for the period, driven by a stronger Q2 related to a 7% increase in China, Hong Kong and Macau.
• The Americas were up 11% led by strong local demand along with the performance of watches and jewelry.
• Japan was down 5% due to high comparables in the prior period, that was driven by tourist spend related to a weaker Yen; local demand remains solid.
• Middle East and Africa were up 13% due to demand in jewelry and watches with the UAE being a key contributor.
• Asia Pacific, Americas, Europe, Japan, and the Middle East and Africa contributed 32%, 25%, 24%, 10% and 9% respectively to group revenue.

Results per product segment:

• The Jewelery Maisons segment was up 9% driven by Buccellati, Cartier, Van Cleef & Arpels and Vhemier.
• The Specialist Watchmakers segment was down 6% for the period.
• The Other segment was down 1% due to dampened demand within its product offering.
• Jewelery Maisons, Specialist Watchmakers, and Other contributed 73%, 15% and 12% respectively to revenue.

Analyst thesis

Our recommendation is based on:

• Valuations are elevated from a P:E and EV:EBIT perspective.
• Watch (15% of revenue) exposure with dampening demand seen in Swiss watch exports puts pressure on growth.
• Growth regions such as Japan are normalising from previous highs (after cheaper Yen saw a spike in tourist spend), and Asia Pacific growth remains dampened (as China’s economic conditions have negatively impacted demand).
• Cost pressure (especially rising precious metal and material costs) could further place pressure on profit margins.