Luxury goods group Richemont has shown a strong recovery over the past 12 months, trading at about R120 at the time of writing on 26 September, up from lows of around R80 a year earlier.
The group reported strong results for the first five months of its financial year, with total sales up 10%, driven mainly by strong growth in its jewellery division and in Asia-Pacific, it said ahead of its annual general meeting in September. AsiaPacific sales were up 22%, compared with 9% growth in the Americas, 6% in Japan and 3% in Europe.
Richemont, which owns luxury brands including Cartier, Van Cleef
& Arpels, Piaget and Chloé, also created a new role of chief technology officer (CTO) to its executive team, appointing retail and digital veteran Jean-Jacques van Oosten to the role. Van Oosten, who holds a PhD in molecular genetics and graduated from the London Business School, has previously served in a number of chief information officer roles, including at Tesco, Travis Perkins Group and Unilever, Richemont said. His latest role was as group chief digital officer and CEO of Rewe Digital, a provider of online solutions.
Johann Rupert, chairman of Richemont, said the creation of the CTO role and Van Oosten’s appointment “reaffirms Richemont’s commitment to meet the demands of today’s environment”, and that it will “strengthen significantly the group’s ability to address current challenges and bring Richemont into a new era of agility and performance”.
How to trade it:
Richemont is currently teetering on its all-time high at 12 175c/share. It could reverse there, which is common. But if support holds firmly above 10 675c/share, that all-time high may well be breached, with potential mediumterm gains to 16 500c/share, and a new bull phase would commence. Go long or increase positions above 12 175c/share, with a fair trailing stop-loss.
Alternatively, downside through 10 675c/ share would end the current uptrend, and losses could deepen to 9 570c/share, and possibly 8 600c/share. ■ email@example.com
Johann Rupert, chairman of Richemont, said the creation of the CTO role and Van Oosten’s appointment “reaffirms Richemont’s commitment to meet the demands of today’s environment”.
Johann Rupert Chairman of Richemont