Jefferies points out that the group achieved a turnover higher than forecast (19.2 billion euros against 18.7 billion euros for Jefferies and 18.8 billion euros for the consensual) but a net shortfall on EBIT (3.4 billion euros against 3.8 billion euros for jefferies and the consensus).
Following this announcement, Jefferies confirms its advice to buy with a target price of 140 CHF.
Jefferies indicates that for the Watches business, the turnover of 3.4 billion euros is slightly higher, the EBIT of 0.6 billion euros or 17.3% is insufficient (jefferies 20%).
“In the fourth quarter, Europe grew by 43%, the Americas by 46%, Asia-Pacific by 8%, jewelry by 25% and watches by 41%,” the analyst also indicates.
Oddo, for its part, confirms its neutral opinion on the stock but lowers its price target to 125 CHF (against 140 CHF).
Oddo was expecting E19,094 million respectively (i.e. 26% growth for the fourth quarter) and E3,765 million (margin 19.7% of which 17.8% in the 2nd half) and the pre-publication FactSet consensus was respectively E19,071 million. and 3805 ME.
‘ The annual EBIT comes out nearly 10% below expectations with an increase in operating costs in H2 which, if expected and announced by the company, goes much further than expectations (operating expenses represented 41.4% of turnover in S1, they pass 48.2% on S2) ‘indicates the analysis office.
‘ Although YNAP’s EBIT loss was visibly reduced in H2, Maisons Joaillres et Horlogers Spécialiss recorded an increase in the margin over the financial year -70 bps / -80 bps below expectations, hence the impression of a operational leverage compared to pre-COVID less strong at Richemont Maisons Joaillres (margin gain of around 300 bps) than at LVMH F&L (observed gain of 800 bps) or at Herms (+500 bps)’ adds Oddo.
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