Oddo BHF reiterates its "outperform" rating on Richemont shares with a target price reduced from 185 to 171 Swiss francs, following a 7% reduction in its EBIT forecasts for fiscal years 2026 and 2027, and a 5% reduction for fiscal year 2028.
According to the broker, the Swiss luxury group cannot be completely immune to the slowdown affecting the luxury market as a result of a global economic environment that has become anxiety-provoking.
However, the analyst believes that 'the strength of its jewelry brands should enable it to remain in a more favorable position than average at this stage, adding that demand for jewelry remains buoyed by the bullish cycle for gold.
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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 (71.6%): the brands Cartier (world No. 1 in jewelry), Van Cleef & Arpels, and Giampiero Bodino;
- luxury watches (15.4%): Piaget, A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin, Officine Panerai, IWC Schaffhausen, Baume & Mercier and Roger Dubuis brands;
- other (13%): 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 (70.3%), wholesale distribution (23.4%) and online distribution (6.3%).
Net sales are distributed geographically as follows: Switzerland (3.2%), the United Kingdom (3.8%), Europe (15.9%), China (19.6%), Japan (10.2%), Asia (13.8%), the United States (21%), Americas (3.5%), Middle East and Africa (9%).
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