Richemont is fairly valued at current levels trading below its long term 5 year average PE ratio. Growth estimates see a steady improvement in the top line and a normalization of the Impact of inventory buy backs on margins. The challenges of the wholesale channel should be mitigated as they attempt to move closer to the customer, this is evident through the e-commerce acquisitions. The industry in which Richemont operates has high barriers to entry, this combined with its improved control over the supply chain give Richemont’s long term pricing power over its products. With the majority of its costs denominated in the Swiss franc, SA shareholders should be cognizant of the fact that the share price remains a function of the rand to swiss franc price.