The China Edit is a weekly curation of the most important fashion business news and analysis from and about the world’s largest luxury market.
GENEVA, Switzerland — Cie. Financiere Richemont SA, the world’s largest jewelry maker, reported slower revenue growth for the first five months of its fiscal year that missed analysts’ estimates on lower sales in mainland China.
PARIS, France — French billionaire Bernard Arnault wants you to spend the night and eat his pastries. After decades of acquiring luxury goods that consumers can drink and wear, the chairman of LVMH Moet Hennessy Louis Vuitton SA last week bought a five-star hotel in St. Barths and in June added a storied Milanese cafe, accelerating his push to meet all his well-heeled clients’ earthly needs.
ZURICH, Switzerland — Richemont boss Johann Rupert has promised to switch off his phone when he takes a break from the company in September. For the South African billionaire it will mark the start of a year-long sabbatical. For his younger managers, it will mark the start of a 12-month competition to show how well they can steer the world's second biggest luxury goods group in his absence - and possibly, ultimately, replace him.
LONDON, United Kingdom — Fabrizio Cardinali will takeover from Eraldo Poletto as CEO of Dunhill on June 1. Prior to his appointment Cardinali was CEO of Lancel, which he joined from Dolce and Gabbana.
ZURICH, Switzerland — While Richemont last week reported a 30 percent gain in annual profit as shoppers spent more on its Cartier jewelry and IWC watches, leather goods and fashion brands such as Lancel and Chloé have struggled. Earnings at Richemont’s so-called soft luxury unit fell by more than half in the last fiscal year.
LONDON, United Kingdom — Martha 'Marty' Wikstrom, chief executive of fashion and accessories at Compagnie Financière Richemont, has resigned from her post, the luxury group announced today. Richemont is the Swiss parent company of fashion, jewellery and watchmaking companies including Dunhill, Chloé, Cartier and Piaget.
PARIS, France — Growth in sales of luxury goods is expected to ease slightly this year, hit by subdued spending in Europe and slower growth in China, consultancy Bain & Co said in a study on Thursday.
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.