Richemont Announces New Leadership as Q4 Sales Show Mixed Results

Luxury group Richemont, home to prestigious brands such as Cartier and Van Cleef & Arpels, experienced a mixed final quarter with a slight 1% decline in sales at actual rates. Despite these challenges, the company reported a 3% increase in full-year sales, reaching €20.62 billion. At constant exchange rates, fourth-quarter sales actually rose by 2%, while full-year sales improved by 8%. Group operating profit fell by 5% to €4.8 billion at reported rates but showed a robust increase of 13% at constant exchange rates.

Nicolas Bos, previously at the helm of Van Cleef & Arpels, has been named CEO of Richemont, signaling a strategic leadership adjustment as the company navigates a tough global economic landscape.

Richemont's jewelry maisons, including Cartier and Van Cleef & Arpels, continued to drive performance with a 6% rise in sales to €14.24 billion, and a modest 1% increase in operating profit to €4.71 billion. Notably, sales at Buccellati more than quadrupled, underlining its strong market presence.

Conversely, the watch division struggled, with sales down 3% to €3.77 billion and operating profit plunging 22% to €572 million, affected by the strong Swiss franc and reduced demand.

Amidst these varied results, Richemont's shares surged 6% to €145.85 in early trading, reflecting investor confidence in the strategic direction.

As Richemont embraces this leadership transition, the luxury sector anticipates how Bos will address the ongoing challenges and opportunities. The company remains committed to enhancing its resilience through focused strategies in local markets and direct client interactions.