COMPAGNIE FINANCIÈRE RICHEMONT SA

(CFR)
  Report
Delayed Swiss Exchange  -  11:30 2022-06-24 am EDT
102.15 CHF   +4.28%
06/22BNP Paribas Exane Lowers Price Target on CIE Financiere Richemo, Maintains Outperform Recommendation
MT
06/16COMPAGNIE FINANCIERE RICHEMONT : Enrolment in the Master of Arts in Design & Applied Arts 2023 is Open!
PU
06/07RICHEMONT : UBS gives a Buy rating
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Richemont cautious on China growth, talks on YNAP drag on

05/20/2022 | 04:21am EDT
FILE PHOTO: Logo of luxury goods group Richemont's flagship brand Cartier is seen in Zurich

ZURICH (Reuters) - Luxury goods group Richemont struck a cautious note over growth in China after its full-year profit disappointed, sending its shares sharply lower and weighing on the sector.

The maker of Cartier jewellery and IWC watches also failed to report any meaningful progress in long-running talks that could see it relinquish ownership of its loss-making online retail business YOOX Net-a-Porter (YNAP).

The world's second biggest luxury group said lockdowns in China were weighing on its results, with 40% of its retail network currently closed, while supply chain problems and rising interest rates clouded prospects for growth in the United States.

Contrary to many executives in the industry who are hopeful of a swift rebound in China once the new round of COVID restrictions end, Chairman Johann Rupert said he thought the Chinese economy would suffer more than many anticipate.

"Even when China comes out of isolation, the bounce back will not be as quick, it will not be a triple digit bounce back," Rupert said.

Harry Barnick, senior analyst at Third Bridge said China's restrictions were limiting growth in a market accounting for roughly 25% of Richemont's sales.

"With shops shuttered in key markets such as Shanghai and customers unwilling to spend on luxury goods in other cities, the country which electrified 2021 luxury goods consumption could dampen Richemont's global outlook in 2022."

Net profit rose 61% to 2.08 billion euros ($2.20 billion), lagging an average estimate of 2.75 billion in a Refinitiv poll, while sales rose 44% in constant currencies in the year ended March 31.

The results marked "the first meaningful miss on profits in luxury", Goldman Sachs analysts said. The miss was partly due to losses for suspending activities in Russia.

The group said talks with an unspecified number of players to create a joint online platform were complex but should be concluded "in the near future".

"We are in talks with a number of partners, and the talks are going well," Rupert told reporters, without mentioning any names.

Richemont said in November it was in talks with online retailer Farfetch about selling a minority stake in YNAP while also trying to attract other investors to ultimately turn YNAP into a neutral platform with no controlling shareholder.

Richemont shares fell 11.6% in early trading, dragging down the whole luxury sector. They have lost almost 23% this year.

"The no deal with Farfetch will hang as a Damocles sword," Vontobel analysts said.

($1 = 0.9451 euros)

(Reporting by Silke Koltrowitz, editing by John Revill)

By Silke Koltrowitz and Silvia Aloisi


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
COMPAGNIE FINANCIÈRE RICHEMONT SA 4.28% 102.15 Delayed Quote.-25.41%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -1.63% 53.6 Delayed Quote.-27.29%
All news about COMPAGNIE FINANCIÈRE RICHEMONT SA
06/22BNP Paribas Exane Lowers Price Target on CIE Financiere Richemo, Maintains Outperform R..
MT
06/16COMPAGNIE FINANCIERE RICHEMONT : Enrolment in the Master of Arts in Design & Applied Arts ..
PU
06/07RICHEMONT : UBS gives a Buy rating
MD
06/02Jewellers' gold sourcing more challenging in times of war
RE
06/02AlphaValue/Baader Europe Lifts Price Target on CIE Financiere Richemo, Maintains Buy Re..
MT
06/02COMPAGNIE FINANCIERE RICHEMONT : Download the Sustainability Report 2022
PU
06/02COMPAGNIE FINANCIERE RICHEMONT : Richemont's 2022 annual report now available online
PU
06/02COMPAGNIE FINANCIERE RICHEMONT : Corporate Document
PU
06/02COMPAGNIE FINANCIERE RICHEMONT : Corporate Document
PU
06/02COMPAGNIE FINANCIERE RICHEMONT : Corporate Document
PU
More news
Analyst Recommendations on COMPAGNIE FINANCIÈRE RICHEMONT SA
More recommendations
Financials
Sales 2023 21 006 M 22 159 M 22 159 M
Net income 2023 3 112 M 3 283 M 3 283 M
Net cash 2023 4 377 M 4 617 M 4 617 M
P/E ratio 2023 18,7x
Yield 2023 2,54%
Capitalization 57 926 M 61 103 M 61 103 M
EV / Sales 2023 2,55x
EV / Sales 2024 2,32x
Nbr of Employees 35 853
Free-Float 89,2%
Chart COMPAGNIE FINANCIÈRE RICHEMONT SA
Duration : Period :
Compagnie Financière Richemont SA Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COMPAGNIE FINANCIÈRE RICHEMONT SA
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 26
Last Close Price 101,44 €
Average target price 131,29 €
Spread / Average Target 29,4%
EPS Revisions
Managers and Directors
Jérôme Lambert Group Chief Executive Officer & Executive Director
Burkhart Grund Group Chief Finance Officer & Executive Director
Johann Peter Rupert Executive Chairman
Ruggero Magnoni Independent Non-Executive Director
Guillaume Pictet Independent Non-Executive Director