PARIS, France — Watch inventory levels at Cartier are healthy and the brand no longer needs to carry out buybacks in order to balance out stock levels globally, Cyrille Vigneron, the head of the Richemont-owned label said on Monday.
"We're at a stage now where we have a healthy level of stocks across our distribution network," Vigneron said in televised comments at the SIHH watch fair in Geneva. "The efforts we made two years ago have borne fruit."
Vigneron said that the jewellery and timepiece maker may still resort to inventory buybacks but on certain collections or as it tweaks its distribution.
Plummeting sales and profits over the last two years forced Richemont and rivals such as Swatch Group to clear excess inventory at retailers, but earnings are improving and Vigneron said demand for watches was recovering in all regions.
He added that Cartier's store network was likely to shrink "a little," mirroring a concentration of watch sales towards big cities.
By Sarah White; Editor: Louise Heavens