Richemont
Note: This is a daily stock update and the information stands true as of 15/01/26, 09:00 CET.
Company Update:
Expert Opinion:
This is a good surprise indeed. The growth in the watch business is especially meaningful, despite the rise in the price of gold which is a hurdle (the company passes price increase to offset the cost of gold which impacts demand). The read across on Swatch is also a positive. Our reduced rating is based on the limited upside we have on fair value. But our expert expects momentum will trump that, especially as he expects the consensus will gradually increase its numbers. He still likes Richemont, which in his view is a true luxury player (alongside Hermès) and there is a speculative appeal on the name. The control is locked by the Ruppert family but things will have to evolve soon and Richemont offers a unique profile (positioning and size) in the luxury world.
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Company Update:
Richemont has just published another consensus-beating quarterly performance, with top-line up 11% YoY at constant rate (+4% YoY as reported).
In addition to solid momentum in the Jewelry business (+14% YoY), the Specialist Watchmakers division has picked up after several consecutive quarters of weakness, with sales improving 7% YoY at constant rate.
All regions delivered better than expected sales, supported by continued double-digit growth in the Americas and strong local demand for the Jewelry Maisons in Japan.
Sales in Asia Pacific increased by 6% YoY at constant rate, with Greater China up 2%.
The recovery in the watch business will be well appreciated after a long period of softness. We may start to adopt a more optimistic view on Swatch as well.
This is a good surprise indeed. The growth in the watch business is especially meaningful, despite the rise in the price of gold which is a hurdle (the company passes price increase to offset the cost of gold which impacts demand). The read across on Swatch is also a positive. Our reduced rating is based on the limited upside we have on fair value. But our expert expects momentum will trump that, especially as he expects the consensus will gradually increase its numbers. He still likes Richemont, which in his view is a true luxury player (alongside Hermès) and there is a speculative appeal on the name. The control is locked by the Ruppert family but things will have to evolve soon and Richemont offers a unique profile (positioning and size) in the luxury world.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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