Richemont sales are now back above pre-pandemic levels, the group’s latest quarterly results reveal.
Turnover for the quarter ended June 30 was up by 129% at constant exchange rates over the same period in 2020, and 22% higher than in 2019.
Growth for the group’s watchmakers was a little more muted at 6% for the quarter in comparison to 2019. Jewellery maisons were up 43%.
Richemont’s online distributors, the division of Net-A-Porter, Mr Porter and Watchfinder saw sales rise 86% since last year but just 8% over 2019.
From total turnover of €4.4 billion for the quarter, Asia Pacific contributed €1.9 billion (up 40% from the same period in 2019 at constant exchange rates).
Only the Americas grew more strongly, by 47% since 2019 at constant exchange rates, with sales of €955 million. Europe is stuck in the slow lane with sales of €905 million, still 15% lower than in 2019.
Along with the announcement of its quarterly financial results, Richemont has revealed sweeping changes to its senior management structure, with a reorganisation that separates decision making on strategic direction, capital allocation and governance for the group from day to day management of individual maisons.
The aim is to direct the group’s brightest minds to building brands that delight customers rather than getting bogged down in corporate and financial machinations.
This means Cyrille Vigneron, president & CEO of Cartier, and Nicolas Bos, president & CEO of Van Cleef & Arpels — Richemont’s two largest brands — will step down from the Senior Executive Committee (SEC) and will not seek re-election to the Board of Directors in September.
Philippe Fortunato, CEO of Fashion and Accessories, Emmanuel Perrin, head of Specialist Watchmakers Distribution, and Frank Vivier, chief transformation officer will also step down from the SEC but continue to report to Jérôme Lambert, group chief executive officer.
“While the enlarged SEC structure proved effective in the early stages of our transformation journey and in navigating one of the most trying times in recent history, the time is ripe for a more streamlined structure as we embark on the next stage of our development. The outstanding development of Cartier and Van Cleef & Arpels, in particular, means that these businesses have reached a size and scale that require the full attention of their leaders and support of the Group to continue on their remarkable trajectory,” explains Richemont chairman Johann Rupert.
“Decisions must be made as close as possible to customers,” he continues. “These governance changes will allow Maison and business executives to focus exclusively on their customers, colleagues, partners and the sustainable development of their entities at a time when the world is changing rapidly and growing in complexity”