Richemont: Strong Q1 Supports Higher Estimates, Buy Confirmed

The Jewelry Maisons segment posted 24% organic growth, reinforcing Richemont’s position as the luxury outlier. CFRUY continues to benefit from jewelry’s stronger perceived value, Cartier’s broader accessible product range, and a recovery in Chinese demand. A moderation in gold prices should gradually reduce input-cost pressure and support gross-margin recovery, with further upside from operating leverage and a more favorable product mix.

Compagnie Financière Richemont SA (CFRHF) (CFRUY) released its Q1 sales update. Performance is impressive, and we are not surprised to see a 7% positive share price movement.