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Compagnie Financiere Richemont SA (CH:CFR)
:CFR
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Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

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CH:CFR

Compagnie Financiere Richemont SA

(CFR)

Rating:77Outperform
Price Target:
CHF160.00
▲(13.11% Upside)
Compagnie Financiere Richemont SA's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by valuation concerns and regional challenges. The company's robust sales growth and strategic investments are significant strengths, while the high P/E ratio and challenges in specific segments present risks.
Positive Factors
Earnings
Jewelry Maisons surprised to the upside with +11% constant currency growth, beating the Street's +9% estimate.
Investment
The stock is liked for providing a pure play luxury jewelry company and the best way to invest in the hard luxury shift, with significant exposure to jewelry and watches.
Market Share
Cartier and Van Cleef have realized significant share gains in the U.S. and continue to innovate around core collections, which enhances the brand's strength.
Negative Factors
Cost Pressures
Rising gold prices present a significant margin headwind for Richemont, especially impacting Cartier due to its exposure to gold products.
Foreign Exchange
Adverse foreign exchange changes have led to a reduction in EBIT forecasts for Richemont by 14% for FY26-27.
Regional Performance
APAC sales were down 7% in constant currency in the fourth quarter, with reported Greater China sales down 16% in the second half.

Compagnie Financiere Richemont SA (CFR) vs. iShares MSCI Switzerland ETF (EWL)

Compagnie Financiere Richemont SA Business Overview & Revenue Model

Company DescriptionCompagnie Financière Richemont SA engages in the luxury goods business in Europe, the Middle East, Africa, Asia, and the Americas. The company operates through Jewellery Maisons, Specialist Watchmakers, and Online Distributors segments. It designs, manufactures, and distributes jewelry products; and precision timepieces, watches, and writing instruments, as well as clothing, and leather goods and accessories. The company offers its products under the Cartier, Van Cleef & Arpels, Buccellati, A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Piaget, Roger Dubuis, Vacheron Constantin, Watchfinder & Co., YOOX, NET-A-PORTER, MR PORTER, The Outnet, Alaïa, Chloé, Montblanc, Peter Millar, Purdey, Serapian, TIMEVALLEE, dunhill, Delvaux, and AZ Factory brands through own boutiques and online stores. Compagnie Financière Richemont SA was incorporated in 1979 and is headquartered in Bellevue, Switzerland.
How the Company Makes MoneyRichemont generates revenue through several key streams primarily focused on the sale of luxury goods. The company operates through various channels, including retail, e-commerce, and wholesale distribution. Retail sales are facilitated through a global network of boutiques and flagship stores, where customers can experience the brands firsthand. E-commerce has become increasingly significant, with Richemont investing in its online platforms to enhance direct-to-consumer sales. Additionally, the company earns revenue through wholesale distribution to selected retailers. Notably, Richemont has formed strategic partnerships with various online luxury marketplaces to expand its digital presence. The company also benefits from brand licensing and collaborations, further diversifying its revenue sources. Overall, the luxury segment continues to drive Richemont's profitability, supported by strong demand from affluent consumers worldwide.

Compagnie Financiere Richemont SA Earnings Call Summary

Earnings Call Date:May 16, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Richemont's robust performance with record-breaking sales and strong growth in Jewellery Maisons, driven by strategic investments and expansion. However, challenges in the Specialist Watchmakers segment and the Asia Pacific region, particularly China, alongside the impact of external headwinds and losses from discontinued operations, tempered the overall positive sentiment.
Q4-2025 Updates
Positive Updates
Record-Breaking Sales Achievement
Sales reached €21.4 billion, marking an all-time high for Richemont, with a 4% increase at actual and constant exchange rates.
Strong Jewellery Maisons Performance
Jewellery Maisons experienced a high single-digit increase for the year, with double-digit growth in the second half, leading to a robust operating result of €4.9 billion.
Successful Expansion and Investment
The company expanded its distribution and manufacturing capacity, including 25 new internal boutiques and significant investments in manufacturing for Cartier and Van Cleef & Arpels.
Solid Cash Flow and Net Cash Position
Cash flow from operating activities was €4.4 billion, and the net cash position remained robust at €8.3 billion.
Growth in the Americas and Japan
Sales in the Americas increased by 15% and Japan by 30%, contributing significantly to the overall performance.
Negative Updates
Decline in Specialist Watchmakers
Specialist Watchmakers' sales declined by 13%, primarily due to weak demand in China, Hong Kong, and Macau.
Challenges in Asia Pacific
Sales in Asia Pacific were down 13%, with a notable 23% decline in China, Hong Kong, and Macau.
Impact of External Headwinds
Operating profit decreased by 7%, affected by higher raw materials costs and unfavorable foreign exchange movements.
Losses from Discontinued Operations
The discontinued operations, including YNAP, reported a loss of €1 billion, reflecting a significant write-down.
Company Guidance
During the call, Richemont's 2025 fiscal year results were presented with several key financial metrics highlighted. The company achieved record sales of €21.4 billion, marking a 4% increase at both actual and constant exchange rates. Operating profit was reported at €4.5 billion, reflecting a 7% decline from the previous year, which was attributed to external headwinds like higher raw material costs and unfavorable exchange rates. Profit from continuing operations was slightly lower at €3.8 billion, down by 1%. The net cash position remained robust at €8.3 billion, and cash flow from operating activities amounted to €4.4 billion. The Jewellery Maisons segment experienced high single-digit growth, driven by double-digit sales increase in the second half of the year. However, the Specialist Watchmakers division faced challenges, particularly in Asia Pacific, leading to a sales decline of 13%. The Americas, Europe, and Japan showed strong sales growth, with Japan leading with a 30% increase. Overall, Richemont's diversified regional footprint helped buffer the group against regional sales fluctuations, and the company continued to invest significantly in its distribution network and manufacturing capacity to support long-term growth.

Compagnie Financiere Richemont SA Financial Statement Overview

Summary
Compagnie Financiere Richemont SA demonstrates strong financial performance with consistent revenue growth and robust profit margins. The balance sheet is solid with moderate leverage, and cash flow management is efficient despite some fluctuations. Overall, the company is well-positioned in the luxury goods industry.
Income Statement
85
Very Positive
Compagnie Financiere Richemont SA demonstrates strong financial performance with a consistent increase in total revenue over recent years. The gross profit margin remains robust at 66.92% for 2025, indicating strong pricing power and efficient production. The net profit margin improved to 12.86% in 2025, showcasing enhanced profitability. However, EBIT margin slightly declined to 20.88% from the previous year, reflecting increased operational costs. The revenue growth rate for 2025 was 3.79%, indicating steady expansion.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.59 for 2025, indicating moderate leverage. The return on equity (ROE) stands at 12.45%, suggesting effective utilization of equity to generate profits. The equity ratio is 53.91%, showcasing a strong equity base relative to total assets. However, total debt remains substantial, which could pose risks if not managed effectively.
Cash Flow
82
Very Positive
Cash flow analysis reveals a positive trend with a free cash flow of 3.26 billion in 2025. The operating cash flow to net income ratio is 1.61, indicating strong cash generation relative to net income. Although free cash flow decreased from the previous year, the company maintains a solid free cash flow to net income ratio of 1.19, reflecting efficient cash flow management. The decrease in free cash flow growth rate suggests potential challenges in sustaining cash flow growth.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue21.40B21.40B20.62B19.95B19.18B13.14B
Gross Profit14.32B14.32B14.04B13.72B12.03B7.86B
EBITDA5.17B6.53B6.53B6.53B4.85B3.22B
Net Income2.75B2.75B2.36B313.00M2.07B1.30B
Balance Sheet
Total Assets41.01B41.01B42.68B40.89B39.99B35.36B
Cash, Cash Equivalents and Short-Term Investments16.77B16.77B19.49B18.34B16.51B13.43B
Total Debt13.15B13.15B16.36B15.67B15.05B13.59B
Total Liabilities18.84B18.84B22.05B21.87B20.12B17.48B
Stockholders Equity22.10B22.10B20.54B18.96B19.81B17.77B
Cash Flow
Free Cash Flow3.40B3.26B3.67B3.51B3.76B2.71B
Operating Cash Flow4.44B4.44B4.70B4.49B4.64B3.22B
Investing Cash Flow-1.55B-1.55B-2.56B-2.07B-2.28B-2.19B
Financing Cash Flow-2.55B-2.55B-1.82B-2.32B-1.77B906.00M

Compagnie Financiere Richemont SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price141.45
Price Trends
50DMA
140.26
Positive
100DMA
145.11
Negative
200DMA
149.39
Negative
Market Momentum
MACD
0.61
Negative
RSI
59.93
Neutral
STOCH
67.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Positive. The current price of 141.45 is above the 20-day moving average (MA) of 135.53, above the 50-day MA of 140.26, and below the 200-day MA of 149.39, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 67.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:CFR.

Compagnie Financiere Richemont SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
CHF82.80B31.66
1.95%2.80%
71
Outperform
CHF7.47B25.16
3.06%-13.19%-88.43%
63
Neutral
$20.49B14.78-2.88%3.11%1.86%-5.76%
$9.39B135.610.49%3.04%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:CFR
Compagnie Financiere Richemont SA
141.45
24.54
20.99%
CH:UHRN
The Swatch Group AG
29.40
-1.82
-5.83%
SWGAF
The Swatch Group
180.68
-9.06
-4.77%

Compagnie Financiere Richemont SA Corporate Events

Richemont’s Strong Start to 2025: Sales Growth Amid Global Challenges
Jul 16, 2025

Richemont reported a solid start to its fiscal year with a 6% increase in group sales at constant exchange rates for the quarter ending June 30, 2025, despite a challenging macroeconomic and geopolitical environment. The growth was driven by strong performances in Europe, the Americas, and the Middle East & Africa, with Jewellery Maisons leading the charge. However, sales in Japan declined due to high prior-year comparatives and a strong Yen, while the Asia Pacific region remained stable. The company’s robust net cash position and consistent growth across distribution channels underscore its resilience and strategic positioning in the luxury market.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF155.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Releases FY25 Annual and Non-Financial Reports
Jun 5, 2025

Richemont has released its FY25 Annual Report and Non-Financial Report, highlighting its financial performance and non-financial disclosures for the year ending March 31, 2025. The reports, prepared in compliance with Swiss regulations and assured by PwC, reflect Richemont’s commitment to transparency and sustainability, potentially enhancing its reputation and stakeholder trust.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Achieves Strong FY25 Results Amid Strategic Expansions
May 16, 2025

Richemont reported strong financial results for the fiscal year ending March 31, 2025, with group sales reaching €21.4 billion, driven by robust performance in its Jewellery Maisons. Despite a challenging macroeconomic environment, the company saw significant growth in most regions, except Asia Pacific, and maintained a solid net cash position of €8.3 billion. The company also completed strategic moves, including the acquisition of Italian jewelry brand Vhernier and the sale of YNAP to Mytheresa. The appointment of a new CEO and expansion of the executive committee are expected to strengthen Richemont’s leadership and operational capabilities.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Releases FY25 Annual Report Highlighting Financial Transparency
May 16, 2025

Richemont has released its Annual Report and Accounts for the fiscal year ending March 31, 2025, which includes comprehensive financial statements and audit reports. The company plans to release additional reports, including the Compensation Report and Corporate Governance Report, on June 5, 2025, highlighting its commitment to transparency and governance. This announcement underscores Richemont’s dedication to maintaining robust financial health and stakeholder trust.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025