Editor’s Note
This analysis highlights a recurring trend in Richemont’s financial performance, where its jewelry division continues to offset ongoing challenges in watchmaking. The divergence in growth rates between these core segments underscores a strategic shift within the luxury group.
The results for the first half of the fiscal year resemble previous ones. Jewelry is carrying Richemont, while watchmaking continues to decline. Everything lies in the details of the growth rates.
The Richemont stock has risen by 25.8% since January 1st. This is notably due to its jewelry segment.
Optimism was already prevalent at yesterday’s close in Zurich. The Richemont stock opened the day at +7.9%, up 25.8% since January 1st. Despite rising gold costs, American customs duties, and the general gloom in the luxury sector, Richemont continues to be carried by its jewelry segment. This results in a 5% increase (10% at constant exchange rates), with an acceleration to +14% in the second quarter of the shifted fiscal year.
Jean-Philippe Bertschy, Head of Swiss Equity Research at Vontobel, noted in a report.