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magazineRichemont on the rise as China reopening boosts shares
Shares in luxury watches-to-jewellery retailer Compagnie Financière Richemont (CFR:SWX), typically known as Richemont, have risen 47% over one year and are testing all-time highs at ₣156.9 (Swiss francs) following the conglomerate’s forecast-beating sales (12 May) for the fourth quarter ended 31 March 2023.
In common with LVMH (LVMH:BIT), Kering (KER:EPA) and Hermes (RMS:EPA), the Cartier-to-Montblanc brands-owner is benefiting from the extraordinary boom in luxury goods sales and the rapid reopening of China.
Richemont’s sales and operating profits rose by a better-than-expected 19% and 34% respectively to all-time highs of €20 billion and €5 billion in the year to 31 March, which the world’s third largest luxury goods maker concluded with €6.5 billion net cash in the coffers.
Founder and chairman Johann Rupert warned that ‘economic volatility and political uncertainty look set to remain features of the trading environment’, though he is confident that Richemont’s brands are ‘well positioned to meet strong demand, notably driven by a significant resumption of Chinese travel.’
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