Richemont's Sales Growth Accelerates in Fiscal Q3 2021/22; Jewellery Remains the Driver

We are increasing our fair value estimate for wide-moat Richemont as the company delivered accelerated sales growth in fiscal third-quarter 2021/22. After tripling from 2020 lows, we see our original positive stance on the strength of Richemont’s business model also reflected in the shares. Further, we believe current growth is helped by transitory tailwinds (savings from foregone experiences, strong asset prices, and psychological need for reward after stress) that we are weary to extrapolate into the future.