Pernod Ricard travel retail sales decline 3% in FY26 on mixed regional performance

Pernod Ricard reported a 3% decline in global travel retail sales for its fiscal year ended 30 June, reflecting contrasting conditions across key markets. The French spirits group, whose portfolio includes Chivas Regal and Martell, said international passenger traffic continued to recover, now running about 10% above pre-COVID 2019 levels.

Asia, a long-standing stronghold for the company, was dragged down by softness in South Korea, while the Middle East conflict negatively impacted fourth-quarter travel retail sales and is expected to weigh on first-quarter FY27 revenue.

On the upside, China's duty-free market showed a strong recovery, with Martell achieving sell-out growth during Chinese New Year. The rebound followed the resolution in late 2025 of a trade dispute between the French and Chinese governments that had severely hit Cognac sales.

Europe benefited from a rise in US tourism, while travel retail in the Americas was supported by dynamic growth in the cruise-line sector. Strong brand activations across Asia also contributed to the more positive regional picture.

The company announced its full-year results yesterday, painting a mixed landscape for travel retail as it navigates geopolitical and consumer demand shifts.