Dive Brief:
- Compagnie Financière Richemont has appointed Nicolas Bos as CEO, per a Friday press release. He begins June 1, and replaces Jérôme Lambert, who will continue with the company as COO.
- Bos is currently the chief executive of Richemont-owned jewelry brand Van Cleef & Arpels, and in his new position he’ll continue to report to Johann Rupert, Richemont’s chairman. Bos will also join the company’s senior executive committee, per the release.
- In a separate release, Richemont reported a 3% revenue uptick in fiscal 2024 to 20.6 billion euros, or approximately $22.4 billion. The company credited the record high sales to its jewelry division, which was up 6% for the year. Meanwhile, Q4 sales were down 1%.
Dive Insight:
Since the second half of 2023, economic headwinds have had an uneven impact on luxury fashion firms. Some companies, such as Burberry and Kering, were hard hit, and their recently reported earnings reflected those challenges. Other companies, including Prada and Hermès, have fared better, and have posted double-digit increases over the past several months, signaling that consumers are still spending on high-end goods, albeit not at every brand.
For Richemont, sales have been slowly but steadily rising. The company’s Q4 decline was offset by a Q3 increase of 4%, and jewelry has been a reliably strong earner. The company’s three jewelry brands, Buccellati, Cartier and Van Cleef & Arpels, reached a new combined record sales of 14.2 billion euros for the fiscal year, according to the release.
Rupert said Bos’ successful tenure was one of the reasons he was chosen for the new role.
“I am truly delighted that Nicolas has accepted to assume the re-established role of Chief Executive Officer of Richemont,” Rupert said. “His vision and ability to uphold Van Cleef & Arpels’ tradition of excellence and creativity have been critical to the Maison’s remarkable growth. 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. The re-established CEO role will help streamline decision making and optimise operational management.”
In addition to Bos, the company also announced the appointment of Bram Schot as non-executive deputy chairman of the board, effective Sept. 11. He replaces Josua Malherbe, who is stepping down after 11 years. Malherbe will remain on the board as non-executive director and as a member of the audit and strategic and security committees, per the release.
Richemont sales grew in every region and across all channels in fiscal 2024 with the exception of wholesale, which remained flat, and online retail, which fell 6% excluding YOOX-Net-a-Porter, which is now classified as discontinued operations.
In 2023, Richemont canceled its planned sale of YNAP to Farfetch. Rupert said in Friday’s earnings release that the company is in ongoing discussion with potential buyers and expects “to be in a position to disclose more before the end of the year.”
“We are encouraged by our increasingly balanced client mix across nationalities, with the emergence of several growth engines for the Group,” Rupert said. “Our deliberate focus on local clients across geographies, supported by increased direct client interaction, is contributing to improved resilience. This year, we have further strengthened our Senior Executive Committee and our Board, and improved the capabilities and desirability of our Maisons, along with their approach to sustainability. Maintaining financial discipline despite the inflationary environment has allowed us to make the necessary investments for the Group’s future profitable growth, in a discerning, responsible and sustainable manner.”
Correction: This story has been updated to reflect the reported earnings period.
