Richemont gained over 5% in Zurich, as Oddo BHF maintained its 'outperform' rating on the stock, with a price target raised from 142 to 158 Swiss francs (CHF).
The analyst cites "rather reassuring" annual results for Richemont, with sales of ME 20,616 and EBIT of ME 4,794, representing a margin of 23.3% after 25.2% in the previous year.
At group level, Q4 activity shows a marked slowdown in Asia Pacific, down 12% cc (after +13% in Q3), but the trend is 'clearly more encouraging everywhere else', with growth in Europe (+7% after -3% in Q3) and the Americas (+12% after +8% in Q3), reports the broker.
The surprise of the publication is the appointment of Nicolas Bos, CEO of Van Cleef & Arpels, as CEO of the Group as of June. A 'rather logical' choice for Oddo BHF, which believes that no radical changes are to be expected in the short term.
In this context, the analyst announces a very slight increase of c. +1% in its EBIT forecasts.
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Compagnie Financière Richemont SA is a world leader in luxury products. Net sales break down by family of products as follows:
- jewelry items (42.2%): the brands Cartier (world No. 1 in jewelry), Van Cleef & Arpels, and Giampiero Bodino;
- luxury watches (31.1%): Piaget, A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin, Officine Panerai, IWC Schaffhausen, Baume & Mercier and Roger Dubuis brands;
- other (26.7%): primarily pens, fine leather goods articles and clothing under the following brands: Montblanc, Chloé, Old England, Purdey, and Alfred Dunhill.
Net sales break down by activity between retail distribution (57.6%), wholesale distribution (23.7%) and online distribution (18.7%).
Net sales are distributed geographically as follows: Switzerland (2.4%), the United Kingdom (5.3%), Europe (15.6%), China (28.9%), Japan (6.3%), Asia (11.9%), the States United (19.9%), Americas (2.3%), Middle East and Africa (7.4%).
COMPAGNIE FINANCIERE RICHEMONT 
