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The luxury goods group has also announced strong sales growth, thanks largely to recently acquired online retailers YNAP and Watchfinder.
The luxury goods group has also announced strong sales growth, thanks largely to recently acquired online retailers YNAP and Watchfinder.

Richemont names veteran Jérôme Lambert as new CEO

INTERNATIONAL NEWS

By Andries Mahlangu - Sep 10th 2018, 14:08

Luxury goods group Richemont has promoted Jérôme Lambert to the position of group CEO, with immediate effect. 

Lambert, who moves from the post of group chief operating officer, replaces Richard Lepeu, who retired more than a year ago.

Richemont also issued a sales update that showed the benefit of its expanded ecommerce activities.

Sales for the five months to August rose 25% at constant exchange rates, to €5.6bn, bolstered by the consolidation of the YNAP (Yoox Net-a-Porter) and Watchfinder acquisitions, it said.

Richemont bought the rest of previously 49%-owned YNAP boosted earlier this year to boost its position in online retailing. Watchfinder is an online seller of second-hand luxury watches.

At actual exchange rates, sales rose 22% from a year ago, the company said.

Stripping out the acquired businesses, sales rose 10% at constant exchange rates and 7% at actual exchange rates.

"All regions, with the exception of the Middle East, posted growth, led by solid momentum in Asia Pacific and the Americas. Hong Kong, Korea and Macau all generated double-digit increases, while China showed good growth," Richemont said.

"Europe had mixed performances throughout the region and was [affected] by the strength of the euro and a challenging year-on-year comparison in the United Kingdom."

"In Japan, growth reflected both higher domestic and tourist spending."

Retail sales were up 14%, with growth in all regions, most notably in Asia Pacific and the Americas, the trading statement said. That was driven by jewellery maisons and specialist watchmakers.

Wholesale sales increased 2% and other businesses reported 4% sales growth.

Richemont’s share price rose as much as 2.75% to R132.36 in early trade on the JSE.

Business Live 

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