The shares of Richemont benefited from strong figures on Thursday.
The luxury goods manufacturer reported significant growth in the jewelry business for the 2024/25 financial year. This outshone the losses at clocks. In addition, thanks to the surprisingly low depreciation, the company surprised positively with the profit. As usual, the group waived a outlook.
In the late morning, the shares noted around 7 percent higher at CHF 165.80 and was thus at the top of the Stoxx 50. This continued Richemont. In the previous week, the papers have increased by more than 14 percent and since the beginning of the year by a good 20 percent. The European selection index STOXX 50 recently noted almost one percent and has increased by six percent since the beginning of the year.
The analyst: Inside, strong growth in the final quarter emphasized. Richemont clearly withdrawn from the competitors LVMH and Kering with the increase in sales, writes, for example, the expert of Vontobel. In addition, the profitability of the jewelry business was above expectations. This now accounts for 54 percent of sales. In 2019 it was 36 percent.
However, according to the expert, the operational result margin (EBIT) was slightly below the consensus. This is mainly due to the Specialist Watchmakers division, which suffered in China, especially from the market weakness.
However, the ZKB analyst writes the loss contribution, including the value correction of the internet retailer YNAP, is better than feared. Although the US tariffs could press consumer behavior and the EBIT margin, Richemont will remain “number 1 position in brand decorations, one of the most attractive product categories in the luxury goods industry,” the conclusion.
It sounds similar at Deutsche Bank: the market focuses on the strong sales in the jewelry business. The expert: Inside the US bank JPmorgan found words of praise: “The performance in the jewelry business was more than sufficient to compensate for the very weak performance in the field of special watches.” This shows that the company had shifted to the more profitable, more profitable and less economic -dependent side of the business, which the investors appreciated: inside.
However, some uncertainties remained in relation to the market environment, especially due to increased gold prices, the strong franc and possible US tariffs. The financial community will probably pay attention to this in the group’s phone conference.