Billionaire Johann Rupert sees R65.82 billion wiped off his empire in one day

Cape Town – Billionaire Johann Rupert’s luxury goods empire, Richemont, lost R65.82 billion in market value on Friday after its shares tumbled following the release of its latest financial results, despite the group reporting strong growth in sales and profits.

According to Daily Investor, Richemont’s share price closed 3.14% lower on November 13, reducing its market capitalisation to approximately R1.84 trillion.

The Swiss-based luxury conglomerate, which owns prestigious brands including Cartier, Van Cleef & Arpels, Montblanc and Chloé, had reported a 17% increase in sales to €12.28 billion (approximately R229.49 billion) for the six months ended September 30, 2026.

Its operating profit increased by 33% to €3.13 billion (R58.48 billion), while net profit climbed 39% to €2.53 billion (R47.27 billion).

However, the strong financial performance failed to reassure investors, who were concerned about slowing growth in the luxury goods market, particularly in the jewellery sector.

Reuters reported that Richemont shares fell by as much as 9% during Friday’s trading session after its second-quarter jewellery sales growth came in below market expectations.

Jewellery sales increased by 14% to €4.41 billion, below analysts’ expectations of 16% growth, raising concerns about whether the division could maintain its strong performance.

Richemont chairman Rupert sought to reassure investors about the group’s pricing strategy, saying: “We have pricing strength; we just don’t want to be greedy.”

The company’s chief executive, Nicolas Bos, also maintained that long-term demand for jewellery remained positive, with sales growth supported by higher volumes rather than price increases alone.

Commenting on the market reaction, Southern Cross Capital portfolio manager Cobus Potgieter told BusinessDayTV, as quoted by Daily Investor: “Just given how tough an environment it has been for these luxury stocks. Its peers have been absolutely decimated this year.”

Merchant West Investments’ Josh Viljoen, however, expressed surprise at the share price reaction, saying: “I still think this is a very strong result.”

Richemont said its first-half performance reflected the strength of its long-term strategy and the continued appeal of its luxury brands.

The group also reported a strong cash position of €7.73 billion at the end of September, despite operating in a challenging global economic and geopolitical environment.

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