ZURICH, Switzerland — Richemont's chairman and founder Johann Rupert is to take a year off from September, leaving management of the world's second-largest luxury goods group in the hands of a recently-named joint chief executive team.
LONDON, United Kingdom — The Savigny Luxury Index (“SLI”) lost 1.5 percent in April, underperforming the MSCI World Index (“MSCI”) by almost two percentage points. Luxury spending in Europe has been hit by a drop in tourist demand, as well as price increases by brands seeking wider margins. The unusually cold weather, particularly in March, also contributed to weak demand for Spring/Summer ready-to-wear collections.
BoF distills recent fashion stories from the French media.
ZURICH, Switzerland — Cie. Financiere Richemont SA, the maker of Cartier jewelry and IWC watches, said full-year net income rose about 30 percent, boosted by favorable exchange rates. Operating profit rose about 18 percent in the year through March as sales rose 14 percent, the Geneva-based company said today in a statement. Revenue rose 9 percent excluding currency shifts. The company said Swiss stock exchange rules required the announcement and the company will report full results on May 16. By: Janice Kew; Editors: Thomas Mulier, Tom Lavell
BoF editor-in-chief Imran Amed recaps the week in the business of fashion.
As money pours into fashion-tech start-ups, at sky high valuations, BoF talks to leading investors to assess the existence of a bubble and understand what separates winning investments from those that are failing.
GENEVA, Switzerland — Cie. Financiere Richemont SA, the owner of the Cartier brand, fell the most in almost two months in Zurich trading after a shareholder sold about 7 million shares for 539 million Swiss francs ($569 million). The shares declined as much as 3.1 percent to 77 Swiss francs, the biggest intraday decline since Jan. 21. That was the price at which the stake was sold, according to two people familiar with the transaction. The stock traded 2.6 percent lower at 77.40 francs at 9:29 a.m local time. Goldman Sachs Group Inc., which is managing the placement, had originally set a price range of 76.30 francs to 77.50 a share, according to the terms obtained by Bloomberg News. Alan Grieve,…
The European luxury goods sector will continue to expand over the next five years at 6-7 percent, with the majority of growth driven by consumers from new markets, revealing just how dependent the sector has become on emerging economies.