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Richemont has re-established the role of chief executive after almost a decade as the Swiss luxury group navigates a market downturn.
The group, which is chaired by its controlling shareholder Johann Rupert, said Nicolas Bos, the head of its jewellery brand Van Cleef & Arpels, would take up the position on June 1. He will report to 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,” Rupert said. “The re-established CEO role will help streamline decision making and optimise operational management.”
Rupert, 73, added that reinstating the role had been under discussion for several years, but that crises, including the Covid-19 pandemic, had interceded.
“I’m not stepping back, but I’m asking Nicolas to assume some of the direct line reporting that I used to execute that I thought was cumbersome,” he told reporters.
The decision came as Richemont reported slower sales in the fourth quarter as the luxury industry navigates a weaker market after a multiyear boom.
“With Nicolas Bos appointed to group CEO, Jérôme Lambert becoming COO, and a new deputy chairman, discussions around succession might resurface,” wrote Thomas Chauvet, analyst at Citi.
“Weaker fourth-quarter jewellery maisons and second-half margins were offset by specialist watchmakers and fashion brands [doing] not as bad as feared,” he added. “We see Richemont as a fundamentally stronger business than during prior industry downturns.”
Shares in Richemont were up 5 per cent in early trading on Friday.
Fourth-quarter revenues at the group grew 2 per cent at constant exchange rates to SFr4.8bn ($5.3bn), ahead of consensus expectations compiled by Bloomberg. While the performance in Asia, excluding Japan, was weaker, with sales falling 12 per cent in the quarter, other regions including Europe, the US, Japan and the Middle East accelerated.
“Two years ago I said that China is going to take longer to return to normality,” Rupert said. “The Chinese will recover . . . however, I think there was a drop in confidence and in the social contract because of the scars left by the lockdowns of Covid.”
Sales at its jewellery brands, its biggest division that is home Cartier, Van Cleef and Buccellati, had sales in line with expectations, according to estimates compiled by Barclays, growing 3 per cent in the quarter.
Full-year sales of SFr20.6bn also matched forecasts, growing 8 per cent at constant exchange rates, though group earnings before interest and tax of SFr4.7bn came in below expectations.
