Richemont placed on positive catalyst watch as JP Morgan sees luxury sector diverging sharply into first quarter results

Richemont has been singled out as the most attractive near-term opportunity in European luxury goods, with its shares placed on positive catalyst watch ahead of full-year results on 22 May, as the sector braces for a first quarter reporting season that is expected to expose a growing gap between winners and losers. Despite a 6% sector rally on the back of the US-Iran ceasefire announcement, luxury stocks remain down an average of 10% year to date, with Richemont's 12% decline seen as a particularly compelling entry point given the strength of its jewellery brands and improving operational execution.