Discovery, Richemont

Finweek English Edition - - Contents -

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. ■ ed­i­to­rial@fin­week.co.za

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

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.