Swiss luxury giant Richemont, owner of famous brands like Cartier, Delvaux and Montblanc, has appointed a new group CEO. Despite a slowdown of sales growth, the group managed to reach a new record in sales and to sextuple its net profit.
Waiting for Chinese recovery
Frenchman Nicolas Bos, currently CEO at jewellery brand Van Cleef & Arpels, will become CEO of the Richemont group on 1 June. The move is seen as remarkable, as there has been no CEO at group level for almost a decade. The managements of the various divisions reported directly to chairman and main shareholder Johann Rupert. However, the 73-year-old strenuously denies that he is stepping aside, arguing instead that appointing a group CEO will streamline decision-making processes.
Richemont had a strong year, with record revenue of 20.6 billion euros (a 3 % growth) and net profit of 2.3 billion (times six!). Still, the group saw growth slow a bit in the fourth quarter, mainly due to weaker demand in China. A sustained rebound in Chinese demand will take some time, chairman Rupert admitted. Other luxury giants, such as Burberry and Kering, also point to China as an explanation for their recent disappointing figures.
