PANDY - Richemont shares slump to 52-week low on slower-than-expected sales China impact

Compagnie Financière Richemont SA (OTCPK:CFRHF) shares fell by the largest margin in years after a bearish earnings report on Friday. The Zurich-based Cartier parent cautioned that Chinese demand remains slow as lockdowns continue to temper growth in the region and 40% of its retail network stands shuttered. Net profits of €2.08 billion for the year came up well short of Wall Street estimates set at €2.75 billion and profits hit by a 75% increase in corporate costs. Additionally, there was concern about the prolonged process to offload a stake in its Italy-based online marketplace Yoox Net-a-Porter to Farfetch (NYSE:FTCH) and push the unit toward profits. While the company’s chairman Johann Rupert indicated talks are progressing smoothly, the elongated process is trying investors’ patience. Yet, likely the largest culprit for the deep drop in shares is caution on the Asia Pacific region, which makes up 41% of group sales.  “Recent localized

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Richemont shares slump to 52-week low on slower-than-expected sales, China impact