Oddo BHF maintains its 'outperform' rating on Richemont shares, with its target price raised from 142 to 158 Swiss francs (CHF).
The analyst cites "rather reassuring" annual results, with sales of ME 20,616 and EBIT of ME 4,794, representing a margin of 23.3% after 25.2% the previous year.
At Group level, Q4 sales showed a marked slowdown in Asia Pacific, down 12% cc (after +13% in Q3), but the trend was "clearly more encouraging everywhere else", with growth in Europe (+7% after -3% in Q3) and the Americas (+12% after +8% in Q3), the broker reports.
The surprise of the publication is the appointment of Nicolas Bos, CEO of Van Cleef & Arpels, as CEO of the Group as of June. A 'rather logical' choice for Oddo BHF, which believes that no radical changes are to be expected in the short term.
In this context, the analyst announces a very slight increase of c. +1% in its EBIT forecasts.
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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 (42.2%): the brands Cartier (world No. 1 in jewelry), Van Cleef & Arpels, and Giampiero Bodino;
- luxury watches (31.1%): Piaget, A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin, Officine Panerai, IWC Schaffhausen, Baume & Mercier and Roger Dubuis brands;
- other (26.7%): 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 (57.6%), wholesale distribution (23.7%) and online distribution (18.7%).
Net sales are distributed geographically as follows: Switzerland (2.4%), the United Kingdom (5.3%), Europe (15.6%), China (28.9%), Japan (6.3%), Asia (11.9%), the States United (19.9%), Americas (2.3%), Middle East and Africa (7.4%).
COMPAGNIE FINANCIERE RICHEMONT 
