(CercleFinance.com) – Stifel believes that Richemont ended the year on a positive note, with results for the 2023 financial year comfortably above expectations, with very significant organic growth in jewelery compared to the sector.
Following this announcement, the analysis office confirms its advice to buy the stock with a target of 160 CHF.
Organic growth for the Jewelry Maisons accelerated to +27% in the 4th quarter of 2023 (vs. +13% for the consensus) and the group’s organic growth accelerated to +22% in the 4th quarter of 2023 (vs. +13% for consensus).
‘ By region, the improvement was driven by a stronger than expected rebound in Asia Pacific (+25% in 4Q23 vs -7% in 9M23) thanks to the recovery of the Chinese cluster and stronger than expected growth momentum in the Americas (+12% in 4Q23 vs. +3% in 3Q23) while Europe (+21%) and Japan (+36%) were overall strong’ underlines Stifel.
‘ Operating income of 5.0 billion euros for the financial year 2023 is 3.5% higher than the consensus, the gross margin (68.7%) and the operating margin (25.2%) are above expectations ‘ adds the analyst.
‘We believe that the magnitude of the increase in sales of the Jewelry Houses in the 4th quarter should be sufficient to support the upward momentum’.
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