Richemont trading update

Not so pleasing was the Richemont trading update, that is out this morning. We expected a weak update on the basis that their Hong Kong stores, which represent a large portion of sales in the greater Chinese reporting area, were affected by the protests. Download the trading update: TRADING UPDATE FOR THE THIRD QUARTER ENDED 31 DECEMBER 2014. Asia pacific was really weak, and that has been the growth engine. There were strong bounce backs in Europe. Here is the table below for the nine months, the second table which would to some extent neutralise the impact of the Umbrella Revolution is the more important one for the 9 months:



The stock has reacted negatively to what clearly is a miss and is light on the revenue front. I do think that this is an opportunity, this is a quality business and will continue to remain compelling from an investment point of view. The current sell off may take a day or two to settle.