Richemont: Plenty to Talk About

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  Wolfgang Hagl
  Redaktor

At Richemont, the financial year differs from the calendar year. The luxury goods company prepares its financial statements as at March 31. While the majority of groups are currently presenting their results for the first three months of the year, Richemont is publishing figures for the entire fiscal year 2025 (as at March 31, 2025) on Friday. At 7:30 a.m., the group, which includes Cartier jewelry, watches from A. Lange & Söhne and Montblanc leather goods and writing instruments, sends out a media release. Two hours later, the management takes the floor in a webcast. CEO Nicolas Bos then discusses the annual financial statements and further prospects with analysts, investors and media representatives.

There is plenty to talk about. After all, the “tariff hammer” swung by Donald Trump at the beginning of April hit the sector hard. Not only did the import duties announced at the time also apply to designer fashion, expensive jewelry and expensive watches. The conflict, which recently focused on the USA and China, threatened to nip any hopes of an upturn in the luxury goods industry in the bud. As a result, shares in the sector came under pressure. Starting from the all-time high reached in mid-February, Richemont lost more than a third of its value by April. The rebound is now underway. After the USA and China agreed on lower tariffs and a 90-day standstill period in Geneva a few days ago, Richemont shares reached their highest level since the end of March.

Strong Holiday Quarter

Friday will show whether and to what extent the trade turmoil has affected the industry giant’s sales. Business was booming until Christmas. Richemont increased sales by a tenth to a record EUR 6.2 billion in the third quarter of the 2025 fiscal year. In the sales regions of America, Europe, the Middle East and Africa as well as Japan, sales rose by double-digit percentages. Meanwhile, affluent customers in the Asia-Pacific region continued to hold back on luxury consumption. While Richemont reported a decline of 7% for the region as a whole, sales in mainland China, Hong Kong and the island of Macau fell by 18%. The strongest product segment was jewelry with growth of 14%. Meanwhile, sales in the watch segment fell by 8% during the Christmas quarter.

The majority of analysts believe that Richemont will continue to cope relatively well with the difficult environment. On this basis, Barclays has just confirmed its “Overweight” rating for the SMI group, although the British research house is taking a more skeptical view of the sector as a whole. The analysts expect the earnings recovery in the luxury sector to be postponed from the second half of 2025 to an unspecified later period. The webcast with Richemont’s CEO could provide new clues in this regard. In addition to the sales side, costs are likely to be discussed during the exchange. In the jewelry sector, Richemont has to pay significantly more for the important raw material gold – the precious metal costs almost a quarter more than at the end of 2024.

Investment Solution

From a technical chart perspective, Richemont is heading towards a prominent resistance area. Not only is the large cap heading towards the 100-day line from below. A horizontal hurdle is also waiting just above the moving average. It will take some courage and optimism to bet on a breakout above this terrain. However, if Richemont once again outperforms its competitors, the current rebound could receive a boost. The call warrant with knock-out ACBVBP provides an entry into this bullish scenario. The BNP Paribas product participates in rising Richemont prices with a current leverage of 5. At CHF 125.543, the stop loss is just under a fifth below the price of the underlying. However, this distance should not obscure the fact that high losses are imminent if Richemont turns downwards.