Investors have taken the shine off Richemont, with the company’s share price down 25% for the year to date.It is becoming increasingly plausible that 2016 could mark the first time since the global financial crisis that the company’s share price ends the year in the red.Luxury brand companies across Europe have struggled in recent months, hit by terror attacks in key shopping spots as well as the general slowdown in the world economy.The trend has been particularly pronounced in Switzerland, where companies face the added difficulty of the strong Swiss franc.Mergence Investment Managers portfolio manager Dirk Steyn says, in Richemont’s case in particular, these problems have been compounded by "very weak demand from traditional strong markets like Hong Kong and Macau".Richemont owns various luxury brands, including the Cartier, Van Cleef & Arpels and Giampiero Bodino jewellery brands.Steyn says Richemont’s short- and medium-term prospects put it at risk for a downgrade by analysts a...
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