Richemont: Reaching for the stars

Research evidence excerpt

Richemont: Reaching for the stars

gh-single digit upgrades to consensus on the back of today’s beat. Specialist Sales contact details:

As we have been arguing now for years (see our recent deep dive note Richemont: Olivia Petronilho - Specialist Sales -

18 Karats of strength), we see Richemont as increasingly one of the highest quality European Consumer

plays in the luxury sector, consistently delivering superior performance on topline, (44-20) 3493-3709

which this year will filter through bottom line as well. Despite the stock olivia.b.petronilho@jpmorgan.com

outperformance YTD, and positive positioning into today, we anticipate a positive

reaction today and ongoing support to higher valuation levels going forward. We

remain Overweight and continue to see Richemont as our top pick in luxury.

• Noteworthy Areas: Richemont Group sales were +20% ex-FX and +17% yoy

reported €6,329m, coming in 7% above our expectations and 8% vs. company

consensus (€5,884m). Impressively, the beat stemmed from all divisions.

1) Jewellery Maison remained very strong, at +24% ex-FX vs. JPMe +13.5%

& cons +13% and accelerating vs +16% last quarter, with both jewellery and

watches growing strongly across all maisons, regions and channels, thanks to

continuous innovation; 2) Specialist Watchmakers division also posted solid

growth, with sales at +8% ex-FX vs. JPMe +4% on easy comps (Q1 26 -7%)

driven by outperformance in Americas and Japan. Greater China remained a

pressure point for the division, but was largely offset by growth in the rest of

Asia. The Other division was +9% (vs JPMe +5%), also on easier comps,

driven by solid +DD% growth at Peter Millar, Gianvito Rossi and Watchfinder,

alongwith ‘solid’ growth at Montblanc. The release called out growth across