Deutsche Bank: Richemont Delivers 'Very Strong' Fiscal Q1 Performance Amid High Expectations

08:04 AM EDT, 07/15/2026 (MT Newswires) -- Compagnie Financière Richemont (CFR.SW, CFR.JO) delivered a "very strong" financial performance in its fiscal first quarter on the back of broad-based strength across the group's geographical regions and segments, according to Deutsche Bank Research. The Swiss luxury goods group's sales rose 20% year over year to 6.33 billion euros, at constant exchange rates, which came in 11% and 10% higher than the consensus and Deutsche Bank's estimates, respectively. The sales beat was supported by continued "exceptional" momentum at Richemont's Jewellery Maisons segment. "By region in cFX, Americas +27%, Japan +36%, and Asia Pacific +21% with double-digit growth in China/HK/Macau, which should be viewed positively given concerns around Chinese luxury demand," the research firm said in a Wednesday note. "Overall, this was a solid print and and we view the results as a positive read-across for the broader luxury sector although it remains to be seen how much of the strength was luxury spend, jewellery driven versus Richemont specific. This is a very strong performance against high expectations and, combined with the gross margin tailwinds from falling gold prices, should support material consensus EPS upgrades today." The buy-rated stock has a price target of 195 francs.