Compagnie Financiere Richemont Downgraded At Cowen & Co. On Global Exposure, Watches

Luxury goods company Compagnie Financiere Richemont was downgraded to market perform from outperform at Cowen & Co. Compagnie Financiere Richemont brands include Cartier, Van Cleef & Arpels and Chlo�. Analysts worry if difficult fourth-quarter conditions in Hong Kong and Macau continue into 2016, it will put pressure on the company's stock. The Hong Kong/Macau region is "a meaningful-top driver with 16% group mix," said a Cowen note published Monday. There's also concern that high-end consumers in the U.S. and Europe won't make up the shortfall for softness in Asia. Uncertainty based on the U.S. presidential election, losses on the S&P 500 (down 5.1% for the year so far) and the terrorist attacks in Paris are creating risk. And weak demand around the world for watches could lead to declines. Cowen cites Swiss Watch data that shows a 3.8% year-over-year decrease in watch exports in Dec. 2015.