Richemont news and boss change

The Geneva-based luxury brand manager has appointed Jérôme Lambert as Chief Executive Officer. Richemont news: He also exceeded expectations with his five-month numbers.

Richemont seems to be negotiating the digital shift, launched in recent months with the acquisition of Yoox Net-A-Porter and Watchfinder. Richemont news: Both online sales platforms account for more than 10% of sales in the first five months of 2018/19. To accompany this move, the Geneva luxury group has appointed a general manager, continuing the reorganization at its head.

The numbers published recently a few hours before the general assembly of the group exceed in their entirety the expectations of the consensus AWP. Richemont owns the Cartier brand.

Richemont news and Profit

richemont news

Between April and August, sales of Richemont jumped 22% to 5.67 billion euros (6.3 billion francs), according to indications provided recently by the manager of luxury brands. Richemont news: at constant exchange rates (cc), sales increased by 25%.

Of this total, $ 708 million is directly related to online activities, representing more than 12% of total revenue. Yoox and Watchfinder have been consolidated at group level since May and June respectively.

Their integration in Richemont will still require work. “We are delighted to see how these online distributors can collaborate with other parts of our business,” said President Johann Rupert on Monday at the group’s general meeting in Geneva.

Richemont news: the acquisitions contributed to the good development of the group, but not only. Organic growth of 10% is higher than forecast by 9% of analysts. Watchmaking aside, all divisions met or exceeded expectations.

richemont news

Richemont Brands

The strong growth was driven by jewelery, whose revenues reached 2.88 billion, which represents an increase of 11% (14% cc). In terms of watchmaking, the revenue increase was 2% to 1.30 billion euros. In local currencies, growth was 4%.

The Asia / Pacific region remained the main outlet for the Richemont Group’s brands, with sales of 2.13 billion, up 20% and 23% (cc). Sales growth was close to 30% in Europe, to 1.72 billion.

The America area was in third place with very important increases, 35% and 42% cc, now exceeding one billion sales.

Richemont news and Forecast

In addition to the publication of these numbers, Richemont announced the appointment of a CEO. Jérôme Lambert, until now operational director, now assumes this function. In the past, he has led the Jaeger-LeCoultre and Montblanc brands, as well as various divisions within the company.

Richemont news: the arrival of a new boss was expected for over a year. Former General Manager Richard Lepeu resigned in July 2017 while Richemont was in great difficulty, with a 50% drop in earnings at the end of the 2016/17 financial year.

Richemont news

President Johann Rupert was interim until the appointment of Mr. Lambert on Monday. In the future, he will focus on his duties on the Board of Directors. The appointment of a chief executive will bring clear leadership to the company’s head, says a Vontobel analyst in a comment.

This is not the first change to the management of the company recently.  Richemont news: the luxury group has changed its technology director and director Fashion and Accessories. The creation of the position of Operations Manager dates from November. Jérôme Lambert is the only one to have occupied it for the moment.

In April, the press was also talking about changes at the head of the Jaeger-LeCoultre and Baume & Mercier brands.

The investors seemed rather convinced by the ads of the day. Around 12:40, the title Richemont took 1.3% to 83.22 francs, in a SMI up 0.88%

Richemont will collaborate with Chinese Alibaba

The two groups will create a platform that will be intended to provide various luxury brands to Chinese consumers.

Richemont news: the Swiss company and Chinese online sales giant Alibaba announced a partnership. The purpose is to offer Chinese customers the luxury products of the Yoox-net-à-porter (YNAP) e-commerce platform % of the Geneva luxury group.

According to the terms of the agreement, Alibaba will provide the future joint venture its technological infrastructure and will provide support in the areas of marketing, payments and logistics, specify the two giants in a joint statement.

The Richemont platform currently distributes 950 luxury brands in the Middle Kingdom. “Our online offering in China is in its infancy and we believe that a partnership with Alibaba will enable us to become a major, long-term online player in this market,” said Johann Rupert, head of the Geneva group. .

“This multi-faceted partnership will provide Chinese consumers with unprecedented access to the world’s leading luxury brands,” said Daniel Zhang, his counterpart in the Chinese distribution juggernaut. According to him, the Chinese clientele will represent half of the world luxury market by 2025. The financial contours of the future collaboration have not been disclosed.

Richemont news: present in the United States, Europe, the Middle East and Asia, the YNAP online sales platform, which Richemont took over at the beginning of the year, distributes its products in “more than 180 countries in the world. around the world, “the statement said.

Alibaba claims more than 600 million users. During his fiscal year 2017/18, closed at the end of March, the Asian giant has reported income approaching $ 40 billion.

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