17-05-2025
Richemont's leadership changes pave the way for future growth
Customers browse luxury products for sale inside a Cartier store, a unit of Richemont, in the GUM department store on Red Square in Moscow. Richemont chairman Johann Rupert says the group, which operated in a persistently uncertain macroeconomic and geopolitical environment globally in the year to March 31, remained well placed to face the challenges.
Image: Reuters
Compagnie Financiere Richemont is well positioned for its next phase of development following the installation of a renewed leadership team and governance structure and completion of several management transitions in several Maisons in the past year.
This was according to well-known South African businessman and chairman of the group Johann Rupert, who was commenting at the end of the JSE-listed and Switzerland-based owner of several of the world's leading luxury jewellery and accessories brands' 2025 financial year to March 31.
The share price soared 7.2% to R3574.52 on the JSE on Friday after the results were released that showed full-year profit fell 1% to €3.76 billion, while the dividend per share was raised 9% to 3 CHF (Swiss francs) per A share/10 B shares, from 2.75 CHF the previous year. A year ago, the share price was R2893.32.
Full-year sales were up 4%, led by a high single-digit increase in jewellery. There was double-digit growth in all regions except for Asia Pacific. Strategic wins included the addition of Italian jewellery Maison Vhernier and finalising the sale of YNAP to Mytheresa in April 2025. Richemont now also holds 33% of LuxExperience, the newly renamed company that owns multi-brand online luxury stores. Sales at Specialist Watchmakers however fell 13%.
Rupert said Richemont delivered a robust performance for the year in a persistently uncertain macroeconomic and geopolitical environment.
'We maintained our focus on nurturing Maisons' current and future growth, investing in our distribution network, manufacturing assets, and quality craftsmanship,' he said.
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He said sales accelerated in the second part of the year, with a 10% rise in the third quarter followed by an 8% increase in the fourth quarter at actual exchange rates.
Notable regional growth rates included Europe (10%), the Americas (16%), Japan (25%), and the Middle East & Africa (15%), at actual exchange rates.
Direct-to-client sales rose further, driven by both retail and online, overall representing 76% of group sales.
He said the global watch market slowdown affected volumes, which had a significant impact on production and fixed operating costs absorption by the Maisons.
This was led by demand weakness in China, with greater resilience in high-end price segments. The rate of decline was softer in the second half, with visible improvement in China.
With the group headquarters and most of its production located in Switzerland, a strengthening Swiss franc weighed on the operating result the segment.
Rupert said that G/FORE was added to Richemont as a distinct Maison in February 2025. The Maison's products are sold in top golf shops, resorts, department stores, and dedicated retail boutiques.
On June 1, 2024, Nicolas Bos, formerly CEO of Van Cleef & Arpels, was appointed CEO of Richemont. On February 14, 2025, the group executive committee was strengthened with the appointments of Marie-Aude Stocker as Chief People Officer, alongside Catherine Rénier (CEO, Van Cleef & Arpels) and Louis Ferla (CEO, Cartier).
'Ongoing global uncertainties will continue to require agility and discipline. Richemont has solid foundations for sustained value creation over time… Our long-term perspective, underpinned by a healthy balance sheet, constitutes a proven formula that has delivered seven-fold sales growth over the past 25 years and remains central to our strategy,' said Rupert.
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