Avior Capital Markets - Richemont,Luxury goods | Global Luxury Goods Monitor | Quarterly Review | Q418

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Avior Capital Markets

Atiyyah Vawda

Richemont,Luxury goods | Global Luxury Goods Monitor | Quarterly Review | Q4'18

The outlook for the luxury sector in 2019 is mixed. Uncertainty regarding the outcome of the China/US trade war, rising risk of a slowdown in the US and China and political unrest in France is affecting retailer and HWNI sentiment. Commentary from brand CEO's and third-party retailers at the SIHH, point to a weaker environment in 2019 with cautious ordering patterns. We expect growth in 2019 to weaken for watches more than soft luxury, due to the cyclical nature of watch consumption and dependence on the wholesale channel. The retail channel will outperform with jewellery and leather goods being the biggest drivers.

In this report, we provide a detailed outlook and top picks in the sector. We also highlight themes that will dominate the sector in 2019.

19/02/2019 33 EN

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Atiyyah Vawda

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Richemont,Luxury goods | Global Luxury Goods Monitor | Quarterly Review | Q4'18

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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