Patrik Schwendimann's questions to COMPAGNIE FINANCIERE RICHEMONT AG /FI (CFRUY) leadership • Q4 2023
Question
Patrik Schwendimann of Zurcher Kantonalbank asked about the potential for further margin improvement in the watch division given its strong brand equity and scale. He also inquired about the group's exposure to Chinese consumers, including tourists, before the pandemic compared to the current level.
Answer
Chairman Johann Rupert and CFO Burkhart Grund explained that while they constantly seek efficiency gains through better data and stock management, they do not provide margin guidance due to uncontrollable variables like exchange rates and input costs. They reiterated their focus on productivity and a fair pricing policy. Regarding Chinese consumers, Grund noted that pre-COVID industry estimates were around 33-36% of sales, while Richemont's residency-based figure was 24% at the end of the last fiscal year, cautioning that future trends are difficult to predict.