Richemont celebrates the 2024-2025 accounts in Zurich
Analysts particularly appreciate the solid results for both the full year and the fourth quarter and, in particular, the performance of the Jewellery division
2' min read
2' min read
(Il Sole 24 Ore Radiocor) - Richemont is charging ahead on the Zurich Stock Exchange, on the back of the results of its 2024-2025 annual report ended at the end of March. Stocks gained more than five points after the Swiss luxury group, which also owns jewellery maison Cartier, posted a annual net profit increase of almost 16.8% to 2.75 billion. Sales rose by 4% to 21.4 billion despite a decline in sales in the Asia-Pacific region.
Bernstein reiterated its 'Outperform' recommendation on the shares, but indicated a price target lower than the stock price, exactly at CHF 155, to reflect some of the risks the group will face. In particular, the investment house explained that it appreciated 'the solid results for both the full year and the fourth quarter' and in particular the performance of the Jewellery division (consisting of Buccellati, Cartier, Van Cleef & Arpels and Vhernier since October), which grew year-on-year by 8% (to EUR 15.3 billion in sales) and in the last quarter by 11%, with high margins (31.9% for the full year and 31.1% in the last three months) in spite of rising raw material costs.
The division's numbers were above expectations. On the other hand, Bernstein pointed out, the group's profitability was lower than consensus, suffering from the disappointing performance of the watch division (which in the full year slowed down by 13% with an operating margin at 5.3%) and also the other businesses (whose revenue increased by 7% at constant exchange rates and operating margin was -3.7%).
In addition, Bernstein pointed to the weak performance in the Asian region, commenting that 'during our recent trip to China, we highlighted that Cartier seemed to be under pressure, with its product lines looking tired'. Swiss watch export data also continue to suggest that the cyclical recovery of the luxury watch sector remains uncertain. In the same vein were the experts at Jefferies, who, while recommending a 'Buy' on Richemont, indicated a price target below stock market prices of 140 Swiss francs.
