|Bid||55.86 x 0|
|Ask||55.88 x 0|
|Day's range||55.40 - 56.40|
|52-week range||44.64 - 87.44|
|Beta (5Y monthly)||1.11|
|PE ratio (TTM)||N/A|
|Earnings date||15 May 2020|
|Forward dividend & yield||1.00 (1.76%)|
|Ex-dividend date||16 Sep 2020|
|1y target est||75.03|
Cartier maker Richemont reported a 67% fall in annual profit on Friday and said the impact of the coronavirus could last up to three years despite signs of recovery in China. Richemont, which also makes Piaget, IWC and Vacheron Constantin watches, said its results this year would be weighed down by the epidemic, with shops closed down and consumer sentiment subdued. Chairman Johann Rupert said other countries would probably find it difficult to follow China, the first country hit by the COVID-19 outbreak, and return to normal.
(Bloomberg) -- The chairman of Swiss watch empire Richemont poured cold water on the luxury industry’s hopes of a quick rebound from the coronavirus, warning of “grave economic consequences” that could last three years.The reality check from Johann Rupert, who earned a reputation for bearishness with downbeat forecasts before the 2008 financial crisis, contrasts with a more optimistic outlook from industry leader LVMH, which has said it expects to see signs of a recovery within weeks. Even after consumers emerge from lockdown, changes in spending patterns will persist, he said.“I’m very concerned about the global economy, and concerned that many politicians are promising things that are not deliverable,” Rupert said on a call. “It’s not a pause; it’s a reset.”The maker of IWC Schaffhausen watches, Cartier jewelry and Montblanc accessories said it’s impossible to make any meaningful forecasts for Richemont’s own business after operating profit fell 22% in the 12 months through March. The shares declined 1.2% early Friday in Zurich.The Swiss watch industry is bracing for the worst year in decades, as exports may drop a record 25% in the best-case scenario, Vontobel analyst Rene Weber has estimated. Watches and jewelry tend to be harder hit in economic crises than fashion and leather goods.Cash ReservesRichemont, which has 2.4 billion euros ($2.6 billion) of cash, has enough liquidity if the downturn lasts three years, Rupert said.“Covid-19 merely sped up what was probably going to happen in any case, which is economic reality setting in,” he said. “The euro zone, despite historically low interest rates, couldn’t get job growth going. We were prepared for an economic downturn, we didn’t know what was going to trigger it -- obviously never thinking it will be a pandemic of such tragic proportions.”Along with other luxury companies, Richemont reported signs of recovery in China in recent weeks after reopening its 462 stores there. But domestic shopping won’t be enough to provide a return to growth, given the importance of mainland consumers’ overseas spending, which Rupert described as non-existent.With most flights grounded and Chinese tourists who have fueled sales of high-end goods largely stuck at home for the coming months, the outlook for travel-related retail is bleak. Warnings of possible quarantines for visitors to countries such as the U.K. worsen prospects further.Other lasting effects of the crisis, according to Rupert: A shift to online shopping will accelerate, becoming a majority of sales within 5 to 10 years; disposable fashion will go out of vogue; and home entertainment will supersede restaurants as people start cooking more for themselves.‘Vulgar Display’The world’s social fabric has been tearing for a decade as central banks have been penalizing savers and governments have bailed out the financially imprudent, Rupert said. In anticipation of a shift away from bling, Richemont has increasingly focused on more understated watches and jewelry, he said.After the coronavirus crisis, “I absolutely believe that the vulgar display will be frowned upon even more,” the billionaire said.(Updates with Rupert comments starting in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Richemont <CFR.S>, the world's second-biggest luxury goods group, reported on Friday a 4% rise in third quarter sales, helped by double-digit growth in China and South Korea, which offset tumbling sales in Hong Kong and Japan. Shares in the Swiss group rose more than 5% after the results as analysts were encouraged by the performance of its jewellery division and its ability to weather global challenges facing the luxury industry. Swiss watchmakers are facing a severe decline in their No. 1 market Hong Kong, shaken by pro-democracy protests, while geopolitical tensions in other parts of the world and a profound reshaping of the watch retail network have also weighed.
Swatch will be blocked from selling some parts to watchmakers, ranging from Richemont's Cartier to Chopard and Breitling, from next year in an escalation of a row between the world's biggest watchmaker and Switzerland's competition regulator. While anti-trust agency WEKO stopped short of an outright sales ban, it said on Thursday it had barred deliveries of so-called movements, the components which keep expensive mechanical timepieces ticking, to Swatch <UHR.S> customers from January. "Companies that thought they would get movements from Swatch Group next year now have to scramble to find replacements," Kepler Cheuvreux analyst Jon Cox said.
* On focus Natixis, Allianz and Richemont Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Well, one thing's for sure, it's not because of great earnings, say DWS analysts who note earnings estimates for the S&P 500 have fallen by 8.6% compared to estimates of a year ago and that the fall is worst in cyclical export-oriented markets like Germany. This is not the basis for a sustained stock-market rally," writes Thomas Bucher, a DWS equity strategist.
* On focus Natixis, Allianz and Richemont Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. The recent rally has been dominated by gains in cyclical stocks, which have outperformed defensives by 10% since September.
Shares in luxury goods group Richemont <CFR.S> fell over 5% on Friday after it said political protests in Hong Kong weighed on first half sales and reported higher than expected losses at recently-acquired online distributors. The maker of Cartier jewellery had been benefiting from its fast-growing jewellery business, but a slight slowdown in the division, weak watch sales and operating losses at online distributors Yoox Net-a-Porter and Watchfinder worried investors. Watch sales have been under pressure, particularly in Richemont's biggest market Hong Kong, where anti-government protests have scared off tourists and battered spending in the Chinese-ruled city.
Richemont <CFR.S> said on Friday that it was teaming up with former Lanvin designer Alber Elbaz for a new venture at a time when luxury goods groups are vying to make star hires. Richemont, best-known as a jewelry and watch business with labels like Cartier, gave few details of the "start-up", and declined to comment on whether Elbaz would be rolling out a fully-fledged brand and clothing collections. The project is a departure for Richemont, which has less of a footprint in fashion than rivals like Christian Dior owner LVMH <LVMH.PA> or Gucci parent Kering <PRTP.PA>, and the group had tended to expand by making acquisitions.
Bremont, which began making watches in 2002, wants to bring British watchmaking back. The brand’s watches are inspired by, but not limited to, the British armed forces, famous cars, and legendary airplanes. Bremont’s latest watch is a very limited creation, with some very interesting bits.