Luxury Giant Confirms Sales Decline And Leadership Changes
Swiss luxury giant Richemont announced a slight 1% sales dip in the fourth quarter and named Nicolas Bos as the new group CEO, reviving a role that had been dormant. Bos, currently CEO of Van Cleef & Arpels, will take on the new position starting next month.
Bram Schot will become Non-executive Deputy Chairman in September, succeeding Josua (Dillie) Malherbe, who is stepping down after 11 years but will remain on the board. Bos will report to Chairman Johann Rupert and oversee all Maisons, functions, and regions, with a focus on Jewellery Maisons, Finance, and Human Resources.
“Nicolas’ vision and ability to uphold Van Cleef & Arpels’ tradition of excellence and creativity have been critical to the Maison’s remarkable growth,” said Rupert. “Building on Richemont’s expanded scale and stronger focus on retail and jewellery, Nicolas will steer the group through the next phase of its evolution. The re-established CEO role will help streamline decision-making and optimise operational management.”
Rupert also thanked Jérôme Lambert, who will continue as COO, for his role in strengthening Richemont’s operations and navigating turbulent times.
In the fourth quarter, Richemont’s sales fell to €4.8 billion ($5.21 billion), a 1% decline. Full-year sales rose 3% to €20.62 billion, with a net profit of €2.36 billion, which was below analysts’ expectations. The dip in Q4 sales was slightly better than analysts had predicted.
Richemont owns a broad range of brands including Cartier, Van Cleef & Arpels, Baume & Mercier, Vacheron Constantin, Chloé, Alaïa, AZ Factory, Delvaux, Dunhill, Gianvito Rossi, Montblanc, and Peter Millar. It also owns Yoox Net-A-Porter but is looking for a new controlling shareholder after a deal with Farfetch fell through. Discussions with potential buyers are ongoing, with more information expected by year-end.
The full-year sales increase was driven by Jewellery Maisons and retail, with notable growth in Asia Pacific (+4% at actual exchange rates, +10% CER) and Japan (+8% actual, +20% CER). The U.S. has become the largest individual market for the group.
Retail was the strongest performing channel, growing by 5% reported and 11% CER, with gains across all business areas and regions. Operating profit fell by 5% to €4.8 billion but rose 13% CER, resulting in a 23.3% operating margin. The company posted a solid profit from continuing operations of €3.8 billion, down 2%, but recorded a €1.5 billion loss from discontinued operations due to a write-down of YNAP assets.
Jewellery Maisons delivered a 33.1% operating margin, with sales up 6% (+12% CER). Specialist Watchmakers had a 15.2% operating margin, with sales down 3% (+2% CER). The ‘Other’ business area, including fashion, had a €43 million operating loss overall, but the Fashion & Accessories Maisons broke even. Fashion sales were down 2% but up 1% CER, driven by creativity and higher sales at most Maisons, including double-digit growth at Alaïa.
The company highlighted ongoing developments at Peter Millar and Delvaux, the first collections of new creative directors at Chloé and Dunhill, and successful higher-priced creations at Montblanc.