Swiss Luxury Conglomerate Richemont’s Stock Market Value Reaches 100 Billion Swiss Francs
Richemont’s stock market value surpassed 100 billion Swiss francs (S$149.2 billion) for the first time, bolstered by the appeal of its blockbuster jewelry label Cartier.
Better-Than-Expected Results
The company, controlled by billionaire Johann Rupert, last week reported better-than-expected results in the most recent quarter, a crucial period for high-end labels that coincides with the holiday shopping season. The results gave a boost to the wider luxury sector, fueling optimism that the industry is recovering after weak demand in recent years, notably in China.
Appeal of Jewelry Segment
Richemont owns Cartier and Van Cleef & Arpels, which enjoy a solid appeal among wealthy shoppers. The jewelry segment, known as "hard luxury," often does better in times of uncertainty as jewelry pieces tend to be more timeless than handbags and other fashion items. Consumers in the Americas and Europe in particular splurged during the three months ended December, with Richemont’s jewelry brands faring strongly.
Rupert Family’s Stake
Rupert’s family controls 51% of the voting rights despite owning only 10.2% of the capital in Richemont. The family’s wealth is estimated at about US$15.8 billion on the Bloomberg Billionaires Index.
Stock Performance
The stock climbed 0.5% to 169.05 francs at 3:50 pm in Zurich, a performance that contrasts with some peers such as Kering, whose fashion label Gucci has been struggling for many years. Kering shares hit a record in mid-2021, valuing it then at 99 billion euros (S$140 billion), but it is now worth about 30 billion euros.
Ranking Higher on the Swiss Market
Although Richemont’s value has been on the rise, a few companies, including Roche Holding and Novartis, still rank higher on the Swiss market.
Conclusion
Richemont’s success is a testament to the enduring appeal of its luxury jewelry brands, which continue to thrive in a competitive market. As the company’s stock value continues to rise, investors are likely to remain optimistic about its future prospects.
FAQs
Q: What is Richemont’s main jewelry label?
A: Richemont’s main jewelry label is Cartier, which is one of the world’s most recognizable luxury jewelry brands.
Q: Who controls Richemont?
A: Richemont is controlled by billionaire Johann Rupert, whose family owns a majority stake in the company.
Q: How much is Richemont’s stock worth?
A: Richemont’s stock market value is currently worth 100 billion Swiss francs (S$149.2 billion).
Q: What is the current trend in the luxury goods market?
A: The luxury goods market is experiencing a recovery after weak demand in recent years, particularly in China.
