Richemont finds a new online paradigm
Interim results to end-September will show just how much of a game-changer the effect of e-commerce will be
Rupert family-controlled luxury goods conglomerate Richemont remains one of the default options for investors rattled by a ravaged rand, despite a rather demanding market rating. Not surprisingly, then, Richemont is up around 13% in the year to date on the JSE. But on the Swiss stock exchange the shares are down a disappointing 10%. In fact, at the time of writing, Richemont’s listed shares had drifted below Sf80 on the Swiss bourse — the lowest level in almost 18 months. The JSE shows Richemont trading on a trailing earnings multiple of nearly 40, with the forward multiple at a "more modest" early 20s. The group obviously needs some sprightly growth figures to justify that rating.
Richemont’s sales update for the five months to end-August was satisfactory, with most local analysts not too perturbed that the 22% top-line increase in constant currency lagged slightly behind market expectations of around 23.5%. If the contributions of online sales platform Yoox Net-A-Porter Grou...
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