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Compagnie Financiere Richemont SA (CH:CFR)
:CFR
RESEARCH TOOLSreports
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Compagnie Financiere Richemont SA
(CFR)
65Neutral
Positive Factors
Earnings growth
The company is expected to achieve 18% EPS growth next year, with potential margin drivers including acquisitions and leverage on fixed costs.
Jewelry market leadership
Despite macro uncertainties, Cartier and Van Cleef are expected to extend their leadership in the attractive jewellery category.
Supply chain and innovation
Richemont is leveraging investments previously made in supply chain to bring greater speed and innovation into the organization.
Negative Factors
Foreign exchange impact
Adverse foreign exchange changes have led to a reduction in EBIT forecasts for Richemont by 14% for FY26-27.
Gold price impact
Rising gold prices present a significant margin headwind for Richemont, especially impacting Cartier due to its exposure to gold products.
Greater China market
Greater China remains a headwind at -18%, although the sequential improvement was primarily related to higher offshore spending while domestic spending was stable.
Compagnie Financiere Richemont SA (CFR) vs. S&P 500 (SPY)
Market Cap
CHF85.81B
Dividend Yield1.89%
Average Volume (3M)1.13M
Price to Earnings (P/E)68.5
Beta (1Y)1.52
Revenue Growth-2.34%
EPS Growth-51.68%
CountryCH
Employees37,117
SectorConsumer Cyclical
Sector Strength59
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.14
Shares Outstanding537,582,100
10 Day Avg. Volume684,723
30 Day Avg. Volume1,129,777
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF173.86Price Target Upside18.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Compagnie Financiere Richemont SA Business Overview & Revenue Model
Company DescriptionCompagnie Financière Richemont SA (CFR) is a Swiss luxury goods holding company founded in 1988 and headquartered in Bellevue, Switzerland. The company operates in the luxury goods sector, focusing primarily on high-end jewelry, watches, and writing instruments. Richemont's prestigious portfolio includes renowned brands such as Cartier, Van Cleef & Arpels, IWC Schaffhausen, Jaeger-LeCoultre, Montblanc, and Piaget. The company is recognized for its craftsmanship, quality, and heritage, catering to a discerning global clientele.
How the Company Makes MoneyRichemont makes money primarily through the sale of luxury goods, including jewelry, watches, and accessories. The company's revenue model is centered on its portfolio of iconic brands that command premium pricing due to their strong brand equity and reputation for excellence. Key revenue streams include direct sales through brand-operated boutiques, e-commerce platforms, and a network of authorized retailers. Richemont also benefits from its strategic focus on digital transformation and innovation, enhancing its online presence to capture a broader audience. Additionally, the company engages in selective partnerships and collaborations to expand its market reach and enhance brand visibility. Factors such as global economic conditions, consumer confidence, and trends in luxury spending significantly impact Richemont's earnings.
Compagnie Financiere Richemont SA Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 20.62B | 19.95B | 16.75B | 13.14B | 14.24B | Gross Profit |
| 14.04B | 13.72B | 11.18B | 7.86B | 8.61B | EBIT |
| 4.79B | 5.09B | 3.78B | 1.49B | 1.56B | EBITDA |
| 6.53B | 5.73B | 4.49B | 2.17B | 2.27B | Net Income Common Stockholders |
| 2.36B | 3.92B | 2.07B | 1.30B | 933.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.49B | 18.34B | 16.51B | 13.43B | 8.82B | Total Assets |
| 42.68B | 40.89B | 39.99B | 35.36B | 30.46B | Total Debt |
| 16.36B | 15.71B | 15.05B | 13.59B | 9.77B | Net Debt |
| 5.66B | 4.78B | 5.17B | 5.72B | 5.31B | Total Liabilities |
| 22.05B | 21.87B | 20.12B | 17.48B | 13.20B | Stockholders Equity |
| 20.52B | 18.96B | 19.81B | 17.77B | 17.14B |
| Cash Flow | Free Cash Flow | |||
| 3.67B | 3.63B | 3.88B | 2.83B | 1.80B | Operating Cash Flow |
| 4.70B | 4.49B | 4.64B | 3.22B | 2.37B | Investing Cash Flow |
| -2.56B | -2.07B | -2.28B | -2.19B | -826.00M | Financing Cash Flow |
| -1.82B | -2.32B | -1.77B | 906.00M | -1.92B |
Compagnie Financiere Richemont SA Technical Analysis
Neutral
146.60
Price Trends
157.48
Negative
156.21
Negative
140.94
Positive
Market Momentum
-2.60
Negative
49.67
Neutral
84.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Neutral. The current price of 146.6 is above the 20-day moving average (MA) of 140.24, below the 50-day MA of 157.48, and above the 200-day MA of 140.94, indicating a neutral trend. The MACD of -2.60 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 84.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:CFR.
Compagnie Financiere Richemont SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
CH:CFR
Compagnie Financiere Richemont SA
146.60
17.73
13.76%
CH:UHRN
The Swatch Group AG
28.60
-8.73
-23.39%
CH:UHR
The Swatch Group
142.15
-47.06
-24.87%
Compagnie Financiere Richemont SA Earnings Call Summary
Earnings Call Date:Nov 08, 2024
(Q2-2025)
| % Change Since: 14.76%|
Next Earnings Date:May 16, 2025
Earnings Call Sentiment Neutral
The call highlighted strong performance in the Jewellery Maisons segment, solid regional growth in the Americas, Japan, and Middle East, and strategic acquisitions. However, these positives were offset by significant declines in the Asia Pacific region, particularly in China, adverse currency impacts, and underperformance in the Specialist Watchmakers and YNAP segments.Q2-2025 Updates
Positive Updates
Jewellery Maisons Performance
Sales increased to EUR7.1 billion, up by 2% in the first half of the year. At constant exchange rates, sales were up by 4%. The Jewellery Maisons generated an operating result of EUR2.3 billion with a 32.9% operating margin.
Regional Growth
The Americas, Japan, and Middle East and Africa all posted double-digit growth. The Americas saw a 12% sales growth in Q2, with the U.S. being the largest individual market for the group.
Strategic Developments
Richemont finalized the acquisition of the Italian Jewellery Maison Vhernier and announced the signing of an agreement for Mytheresa to acquire 100% of YNAP.
Strong Balance Sheet
Net cash position remained solid at EUR6.1 billion despite a EUR1.7 billion dividend payment.
Manufacturing Investments
The group made further investments in manufacturing capacity for Jewellery Maisons by opening, acquiring, or expanding facilities to support higher sales.
Negative Updates
Asia Pacific Sales Decline
Sales in Asia Pacific declined by 18% in the first half, largely driven by a 27% drop in China, Hong Kong, and Macau combined.
Specialist Watchmakers Sales Drop
Sales for Specialist Watchmakers were down 17% at actual exchange rates and 16% lower at constant exchange rates. Operating profit decreased by 59%.
Operating Profit and Margin Decline
Operating profit was EUR2.2 billion, 17% lower than the prior year period. Reported operating margin was 21.9%, a 410 basis point reduction.
Currency Impact
Adverse foreign exchange movements contributed to a 12% decline in operating profit, with significant impacts on gross margin and finance costs.
YNAP Performance
Sales for YNAP were down by 15% during the period, with an operating result from discontinued operations showing a EUR1.3 billion loss.
Company Guidance
During the Richemont Fiscal Year 2025 Interim Results Presentation, the company reported stable sales at constant exchange rates, with a slight 1% decline at actual rates. Operating profit was EUR2.2 billion, marking a 17% decrease from the previous year, and the operating margin fell by 410 basis points to 21.9%. The net cash position remained strong at EUR6.1 billion, despite a EUR1.7 billion dividend payment. The Jewellery Maisons segment, which includes Cartier and Van Cleef & Arpels, saw mid-single-digit growth, offsetting declines in the Specialist Watchmakers. Regional performance varied, with double-digit sales increases in the Americas, Japan, and the Middle East and Africa, while Asia Pacific, particularly China, saw significant declines. The company also noted strategic developments, including expanding its manufacturing capacity and finalizing the acquisition of the Italian jewellery brand Vhernier. Retail sales represented 70% of group sales, growing by 2%, while online retail sales increased by 7%, and wholesale sales decreased by 6%.Compagnie Financiere Richemont SA Corporate Events
Mytheresa Completes Acquisition of YOOX NET-A-PORTER from Richemont
Apr 24, 2025
Mytheresa has completed its acquisition of YOOX NET-A-PORTER (YNAP) from Richemont, marking a significant milestone in its expansion within the digital luxury sector. The acquisition will see Mytheresa, now renamed LuxExperience B.V., consolidate YNAP under its umbrella, enhancing its position in the market. The integration aims to strengthen Mytheresa’s retail brands and improve operational efficiency through shared infrastructure. Richemont received a 33% stake in Mytheresa as part of the deal, reflecting a strategic partnership. This move is expected to create value for stakeholders and position Mytheresa as a resilient global player in digital luxury.
Mytheresa to Acquire YOOX NET-A-PORTER, Forming LuxExperience B.V.
Apr 11, 2025
Mytheresa, a prominent player in the digital luxury retail sector, has received final regulatory approval to acquire YOOX NET-A-PORTER (YNAP) from Richemont. This acquisition aims to create a leading global multi-brand digital luxury group under the new entity LuxExperience B.V. The transaction is expected to close on April 23, 2025, and will see Mytheresa issuing new shares to Richemont, making it a significant shareholder. The merger is anticipated to generate substantial synergies and enhance the value proposition for luxury customers, brand partners, and shareholders. However, the integration process is expected to initially dilute Mytheresa’s EBITDA margin, with a restructuring plan in place to return YNAP to profitability within 24 to 36 months.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.