MID-TERM ANALYSIS: SWATCH VS RICHEMONT

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Artman
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MID-TERM ANALYSIS: SWATCH VS RICHEMONT

Post by Artman » Wed Jun 06, 2018 8:36 pm

WHAT DROVE THE RESULTS?

by Robin Lim, http://www.deployant.com

In a recent report by Bloomberg, it was stated that Swatch Group’s stock performance this year “outshone” its counterpart Compagnie Financière Richemont SA. Up to 23 May, Swatch’s stock prices had jumped 22%, as compared to Richemont’s modest gain of 3.7%.

While both of them are in the same industry, the difference in performance is slightly staggering. For comparison purpose, LVMH Moët Hennessy Louis Vuitton SE – or more commonly known simply as LVMH – gained approximately 27.3% in the same period. It is fair to say that the watch and luxury goods industry is doing fairly well in the current economic climate.

There are several reasons that attribute to the disparity. While the Swatch Group is gaining market share in the watch industry, Richemont is finding ways to rationalise wholesale channels and control inventory. We will be looking in-depth into the reasons behind some of the price action this year.

https://deployant.com/mid-term-analysis ... richemont/
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