Back in February,
In the latest earnings report, Richemont reported strong sales across China following the end of the Covid Zero policy. In the first quarter of the year, Richemont saw an operating profit of $5.5 billion USD, with sales rising 14%. The stock also rose as much as 5.9% in Geneva. The company’s chairman Johann Rupert noted the economic volatility and political uncertainty, but is confident that Richemont will be able to march forward steadily.
Richemont discusses its brands’ strong positioning around the world, reporting that similar to their competitors, its brands have also reported better-than-expected estimates. According to Business of Fashion, an analyst at Vontobel, Jean-Philippe Bertschy, noted, “Brands with strong pricing power are likely to emerge as the winners in the coming months. Richemont is very well positioned with Cartier, Van Cleef & Arpels or Vacheron Constantin. The company has everything in place for further market share gains.” In regards to the rumors of an LVMH takeover, Rupert shot down the idea of merging with their rival. He did mention of LVMH, “We’re in constant dialogue and we respect each other’s independence.”
Two years ago, when investment bankers suggested a deal with Kering, Richemont’s Rupert declined stating, “Why would we want to? We know what we have.” The company has plans to buy back as many as 10 million A shares that represent the 1.7% capital of the company.
In other fashion news, Timothée Chalamet is the new ambassador for the BLEU DE CHANEL fragrance.