Richemont

Switzerland-based Richemont operates in four business areas: Jewellery Maisons, Specialist Watchmakers, Online Distributors, and Other (mainly fashion and accessories). Its brand portfolio includes Cartier, Van Cleef & Arpels, Buccellati, Piaget, Montblanc, and Purdey.

The company witnessed sales growth acceleration in its most recent Fiscal third-quarter performance. Richemont witnessed double-digit sales growth across all of its regions, channels, and business areas.

Compared to the year-ago period, the company saw a 38% growth in Jewellery Maisons, 37% growth in Other, and 25% growth in Specialist watchmakers. The company continued to see rebalancing in the regional sales mix, with Asia pacific making up 38% of Group sales. Europe and the Americas contributed 25% and 23% of Group sales, respectively.

Richemont shares have declined 25% so far this year. With a price/earnings multiple of 25 and a price/sales ratio of 3.9, Richemont is still expensive when compared to Kering.

While Richemont’s TipRanks Smart Score of 4 out of 10 is better than Kering’s, both hedge funds and retail investors seem less optimistic about the stock. Hedge funds have decreased holdings in Richemont by 547,900 shares in the last quarter.

Further, Tipranks data indicates the number of TipRanks portfolios holding Richemont has dropped about 36.6% in the past 30 days.