On 5 November 2016 the Richemont Group announced their most recent six month results, which were significantly below the same period last year, reflecting the difficult period that the watch industry is still under.
Most markets reported a downturn, and retail sales outperformed wholesale. The buy-backs of watches by a number of brands, in combination with lower sales and profit, lead to a 43% decline in operating profit to 798 million EUR. Net profit is down 51% compared to the prior period to 540 million EUR.
For more detail and the full Richmont announcement, click on this link.
This, however, was not the only major announcement. In a significant structural change, Richemont have not only announced their retirements of their CEO Richard Lepen, CFO Gary Saage, and eight Board members, but will also abolished the CEO position. The heads of brands will report directly to Board and Executive Chairman Johann Rupert.
Vacant positions on the Board will be filled by four existing Richemont executives. In perhaps the most noteworthy movements, IWC CEO Georges Kern will be Head of Watchmaking, Marketing and Digital, and Montblanc CEO Jérôme Lambert will be Head of Operations and everything excluding jewellery and watches.