Switzerland’s gold exports, along with the watches and jewellery it sells to America (worth $7bn in 2024), may simply have convinced the president the country is rich enough to bear more tariffs https://t.co/aUZ3dDflIw ...

Core Viewpoint - Richemont reported a solid start to the fiscal year 2025, with group sales increasing by 6% at constant exchange rates, driven by strong performance in Europe, the Americas, and the Middle East & Africa, despite challenges in Japan and the Asia Pacific region [2][4][5]. Summary by Region - **Europe**: Sales increased by 11% to €1,295 million, supported by robust local demand and positive tourist spending, particularly in Italy and Germany [3][5]. - **Asia Pacific**: Sales decreased by 4% to €1,731 million, with a notable 7% decline in China, Hong Kong, and Macau, offset by growth in other Asian markets [3][5]. - **Americas**: Sales rose by 17% to €1,335 million, driven by strong local demand across all business areas [3][5]. - **Japan**: Sales fell by 15% to €527 million, impacted by a high comparative from the previous year and reduced tourist spending [3][5]. - **Middle East & Africa**: Sales increased by 17% to €524 million, led by the UAE market and higher tourist spending [3][5]. Summary by Distribution Channel - **Retail**: Sales grew by 6% to €3,734 million, accounting for 69% of group sales, with growth across all regions except Japan [3][6]. - **Online Retail**: Sales increased by 6% to €323 million, reflecting robust growth across almost all regions [3][7]. - **Wholesale and Royalty Income**: Grew by 6% to €1,355 million, driven by solid group sales performance [3][6]. Summary by Business Area - **Jewellery Maisons**: Sales rose by 11% to €3,914 million, marking a third consecutive quarter of double-digit growth [3][8]. - **Specialist Watchmakers**: Sales decreased by 7% to €824 million, primarily due to declines in China, Hong Kong, and Macau [3][8]. - **Other (Fashion & Accessories)**: Sales declined by 1% to €674 million, with notable performances from brands like Peter Millar and Alaïa [3][8]. Financial Position - The group maintained a strong net cash position of €7.4 billion as of 30 June 2025, slightly up from €7.3 billion in the previous year, after accounting for a cash-out related to the sale of YNAP [6][9].

Investment Rating - The report rates several companies as "Buy," including Yili, Shanxi Fen Wine, Ninebot, Midea, YUTO, and Huali [5][9]. Core Insights - The report highlights a divergence in performance between 'new consumption' stocks, which are experiencing strong growth, and 'traditional consumption' stocks, which are underperforming due to their reliance on macroeconomic conditions and stimulus policies [2][30]. - Key investment themes for 2H25 include structural opportunities and high earnings growth in new consumption trends, market share gains in traditional sectors, and high dividend yields from established consumer leaders [3][10]. Summary by Sections 1. Market Overview - The report notes slower-than-expected implementation of consumption stimulus policies in 1H25, impacting sectors like home appliances and baijiu [2][18]. - The divergence in stock performance is attributed to the macro recovery lacking visibility, with new consumption stocks benefiting from structural opportunities [30][31]. 2. Investment Themes - Structural opportunities and high earnings growth are expected in areas such as smart home products, mass snacks, beauty, and pet care [3][10]. - Market share gains are anticipated in traditional consumer sectors, particularly through consolidation and domestic substitution [3][10]. - High dividend stocks, particularly in baijiu, dairy, and white goods, are highlighted as attractive due to strong cash flows and supportive policies [3][10]. 3. Sector Preferences - The report adjusts sector preferences, ranking dairy products highest, followed by soft drinks, beer, and cosmetics [4]. - It emphasizes the potential for market share consolidation in the e2W sector amid stricter regulations [4]. 4. Stock Picks - Specific stock picks include Yili Industrial, Shanxi Fen Wine, Ninebot, Midea, YUTO, and Huali, all rated as "Buy" due to their strong fundamentals and growth prospects [5][9][11][12][13][14]. 5. Consumer Trends - The report identifies Gen Z as a significant driver of new consumption trends, focusing on emotional and experience-based consumption [38][39][40]. - It notes that Gen Z's preferences are reshaping the consumer market, leading to increased demand for local and trendy brands [39][40].

Core Insights - Richemont has published its combined Annual Report and Non-Financial Report for the fiscal year ending March 31, 2025, which includes comprehensive financial statements and governance details [3][4]. Financial Reporting - The Annual Report includes the Chairman's review, consolidated financial statements, and audit reports, previously released on May 16, 2025 [3]. - The Non-Financial Report adheres to the Global Reporting Initiative (GRI) Standards and complies with Swiss Code of Obligations, including climate disclosures [4]. Availability of Reports - Both reports are accessible for download on Richemont's official website, with hard copies available upon request [5]. - In South Africa, the reports can be obtained directly from the Depository Agent, Computershare Investor Services [6]. Company Overview - Richemont is known for its prestigious Maisons, focusing on craftsmanship and creativity, with a commitment to sustainable growth [7]. - The company operates in three main business areas: Jewellery Maisons, Specialist Watchmakers, and Fashion & Accessories Maisons [8]. Stock Information - Richemont A shares are listed on the SIX Swiss Exchange and included in the Swiss Market Index (SMI), with a secondary listing on the Johannesburg Stock Exchange [9].

Core Points - Richemont has published its Annual Report and Accounts for the fiscal year ending 31 March 2025, which includes the Chairman's review, consolidated financial statements, and audit reports [1] - The combined Annual Report, including the Compensation Report, Corporate Governance Report, and Business Review, is expected to be published on 5 June 2025, along with the Group's Non-Financial Report 2025 [2] - Richemont operates in three main business areas: Jewellery Maisons, Specialist Watchmakers, and Other, primarily Fashion & Accessories Maisons [4] Company Overview - Richemont is focused on nurturing its prestigious Maisons, emphasizing craftsmanship and creativity, with a commitment to sustainable growth [3] - The company’s A shares are listed on the SIX Swiss Exchange and included in the Swiss Market Index, with a secondary listing on the Johannesburg Stock Exchange [5]