Financial Data and Key Metrics Changes - Sales for the first half of the year were stable at constant exchange rates and just 1% lower at actual exchange rates, with an operating profit of EUR2.2 billion, a 17% decrease compared to the prior year period [6][7] - Profit from continuing operations decreased by 20% to EUR1.7 billion, with a reported operating margin of 21.9%, down 410 basis points from the previous year [6][7][38] - Cash flow from operating activities amounted to EUR1.2 billion, reflecting a decrease of EUR417 million compared to the prior year period [7][42] Business Line Data and Key Metrics Changes - The Jewellery Maisons, the largest business area, achieved sales of EUR7.1 billion, up 2% in the first half, with a 32.9% operating margin [21][22] - Specialist Watchmakers saw a 17% decline in sales compared to the prior year period, primarily due to a 29% drop in the Asia Pacific region [26][27] - The Other business area reported a 4% increase in sales, driven by a strong double-digit increase at Watchfinder [30] Market Data and Key Metrics Changes - The Americas region experienced double-digit sales growth, contributing 23% of group sales, up from 21% in the prior year [12] - Asia Pacific sales declined by 18%, largely driven by a 27% drop in China, Hong Kong, and Macau combined [13] - Japan's sales increased by 42%, supported by solid domestic demand and inbound tourism [15] Company Strategy and Development Direction - The company made significant investments in manufacturing capacity for its Jewellery Maisons, including the acquisition of the Italian Jewellery Maison Vhernier [10] - The group aims to strengthen its corporate governance and leadership across its Maisons, with new appointments in key positions [11] - The company is focused on maintaining a balanced regional footprint to offset declines in specific markets, particularly in Asia Pacific [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macroeconomic challenges and emphasized the importance of maintaining a disciplined approach [49] - The outlook remains cautious due to the uncertain environment, but the company believes in the strong positioning of its Maisons for sustainable value creation [49] Other Important Information - The company announced the agreement to sell YNAP to Mytheresa, with the transaction expected to close in the first half of calendar year 2025 [46][47] - The net cash position remained solid at EUR6.1 billion, despite a decrease due to dividend payments [45] Q&A Session Summary Question: Growth of various nationalities in Jewellery Maisons - Management noted a significant increase in domestic clients across regions, with a decrease in purchases by Chinese nationals due to macroeconomic factors [54][56] Question: One-off costs impacting margins - Management confirmed that one-off costs related to acquisitions and communication expenses contributed to the lower operating margin, with approximately EUR125 million attributed to one-off items [59][60] Question: Recent sales trends in September and October - Management refrained from commenting on short-term trends but noted stable sales evolution across most markets [67] Question: Inventory situation in China for watches - Management assured that inventory levels in China are healthy and closely monitored to avoid overstocking [90] Question: Mitigating actions for rising gold prices - Management indicated a cautious approach to pricing, aiming to maintain attractiveness for domestic clients while absorbing some cost increases [85][86]

Core Viewpoint - The retail sector presents undervalued investment opportunities despite its cyclical nature and competitive landscape, with potential for significant returns through careful selection of stocks [1][2][3]. Group 1: Richemont (CFRHF) - Richemont is recognized as one of the top European picks by JPMorgan, with a total return of approximately 1.3x over the past five years, supported by a five-year average return on common equity ratio of 11.5% [5][6]. - The company specializes in Veblen goods, which maintain demand throughout economic cycles, benefiting from strong spending power in its target market [6]. - Richemont's first half fiscal 2024 earnings report showed a 6% year-over-year revenue increase to €2.601 billion (approximately $2.8 billion), driven by a 14% rise in Asia Pacific sales and a 10% increase in Jewellery Maisons [7]. - The stock has a price-to-earnings-growth ratio of 0.7x and a five-year average dividend yield on cost of 3.8%, indicating strong fundamentals and providing a price floor [8]. Group 2: Rent The Runway (RENT) - Rent The Runway is a U.S.-based e-commerce platform for renting and buying apparel, with its stock price showing volatility due to its early-stage nature [11]. - The company reported fourth-quarter revenue of $75.8 million, exceeding estimates by $1.39 million, and provided guidance for revenue growth in 2024 between 1% and 6% [12]. - Despite a recent surge in stock price, RENT remains undervalued with a price-to-sales ratio of 0.1x, presenting potential for significant returns [13]. Group 3: Nike (NKE) - Nike is positioned to benefit from seasonal trends with its new summer product line and the upcoming Summer Olympics, enhancing its sponsorship opportunities [15]. - The company surpassed earnings estimates for the fiscal third quarter of 2024, beating revenue targets by $130 million and earnings-per-share targets by 23 cents, with footwear sales increasing by 2.4% and equipment sales by 20.8% year-over-year [16]. - Nike's consolidated revenue from China rose by 5% year-over-year to $2.08 billion, indicating systemic growth in the region [16]. - The stock's price-to-earnings ratio of 27.5x is at a 34% discount to its five-year average, and it offers a forward dividend yield of 1.6%, enhancing its investment appeal [17].

Shoppers line up to enter a Cartier store, a unit of Cie. Financiere Richemont SA, on Canton Road in the Tsim Sha Tsui area of Hong Kong. Shares of Swiss luxury group Richemont climbed as much as 6.3% Friday after the company reported record full-year sales, even as Asia-Pacific spending waned. The Cartier owner said group sales rose 3% at actual exchange rates to an all-time high of 20.6 billion euros ($22.38 billion) in the financial year ending in March, despite a weakening outlook for luxury brands. Sha ...

Investors with an interest in Retail - Jewelry stocks have likely encountered both Signet (SIG) and Compagnie Financiere Richemont AG (CFRUY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate ...

Investors with an interest in Retail - Jewelry stocks have likely encountered both Signet (SIG) and Compagnie Financiere Richemont AG (CFRUY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highli ...

Compagnie Financiere Richemont SA (OTCPK:CFRHF) Q2 2024 Earnings Call Transcript November 10, 2023 3:30 AM ET Company Participants Sophie Cagnard - Corporate Communications and IR Director Burkhart Grund - CFO Jerome Lambert - CEO Cyrille Vigneron - Cartier CEO Johann Rupert - Chairman Conference Call Participants Louise Singlehurst - Goldman Sachs Thomas Chauvet - Citi Research Zuzanna Pusz - UBS Luca Solca - Bernstein Antoine Belge - BNP Paribas Exane Edouard Aubin - Edouard Aubin Jon Cox - Kepler Cheuvre ...

Compagnie Financière Richemont SA (OTCPK:CFRHF) Q2 2022 Results Earnings Conference Call November 12, 2021 3:30 AM ET Company Participants Sophie Cagnard - Investor Relations Johann Rupert - Chairman Jérôme Lambert - Chief Executive Officer Burkhart Grund - Chief Finance Officer Cyrille Vigneron - Chief Executive Officer, Cartier Nicolas Bos - Chief Executive Officer, Van Cleef & Arpels James Fraser - Investor Relations Conference Call Participants Antoine Belge - Exane BNP Paribas Louise Singlehurst - Gold ...

Compagnie Financière Richemont SA (OTCPK:CFRHF) Q4 2021 Earnings Conference Call May 21, 2021 3:30 AM ET Company Participants Sophie Cagnard - Investor Relations Johann Rupert - Chairman Jerome Lambert - Chief Executive Officer Burkhart Grund - Chief Finance Officer Cyrille Vigneron - Chief Executive Officer, Cartier Nicolas Bos - Chief Executive Officer, Van Cleef & Arpels James Fraser - Investor Relations Conference Call Participants Louise Singlehurst - Goldman Sachs Francesca Di Pasquantonio - Deutsche ...

FY21 ANNUAL RESULTS 31 MARCH 2021 Certain of the matters discussed in this document about our and our subsidiaries' future performance, including, without limitation, store openings and closings, product introductions, sales, sales growth, sales trends, store traffic, Richemont's strategy and initiatives and the pace of execution thereon, Richemont's objectives to compete in the global luxury market and to improve financial performance, retail prices, gross margin, operating margin, expenses, interest expen ...

FY21 INTERIM RESULTS 30 SEPTEMBER 2020 Certain of the matters discussed in this document about our and our subsidiaries' future performance, including, without limitation, store openings and closings, product introductions, sales, sales growth, sales trends, store traffic, Richemont's strategy and initiatives and the pace of execution thereon, Richemont's objectives to compete in the global luxury market and to improve financial performance, retail prices, gross margin, operating margin, expenses, interest ...