Richemont Names New Cartier CEO

Vigneron led Cartier for eight years and boosted gross sales by lowering mannequin traces and specializing in the storied model’s best-selling jewelery collections and watch designs. That technique, which cemented Cartier’s place as the highest world jewellery home and second-biggest luxurious watchmaker, isn’t anticipated to alter beneath the management of Ferla, who beforehand spent 11 years with Cartier starting in 2006.

The change marks “a really clean transition at Richemont, which ought to reassure traders,” Vontobel analyst Jean-Philippe Bertschy stated. The 2 manufacturers are Richemont’s “gross sales and revenue drivers,” with Cartier accounting for about 10 billion euros ($10.7 billion) in annual gross sales and Vacheron Constantin about 1 billion euros, Bertschy stated.

Richemont shares have been little modified in early Zurich buying and selling Tuesday. They’ve fallen about 6% over the previous 12 months.

Since his 2017 transfer to the highest job at Vacheron — one of many so-called holy trinity of Swiss watchmakers together with Patek Philippe and Audemars Piguet — Ferla has vaulted the watch maker into the highest 10 Swiss manufacturers by income. Gross sales on the model, finest recognized for its Abroad sports activities watch assortment and the latest reissue of the 222 mannequin in gold, elevated by about 18% in 2023, based on estimates by Morgan Stanley.

Beneath Ferla’s management, Vacheron has lowered its dependence on gross sales to China, elevated its presence within the high US market and offered extra watches direct to shoppers by way of its personal boutiques.

The change introduced Tuesday marks the most recent government shakeup at Richemont. The corporate in Might named Nicolas Bos, beforehand head of Van Cleef & Arpels, its second-biggest jewellery model behind Cartier, to be the brand new group CEO. That appointment clarified some succession questions on the firm managed by South African billionaire and Govt Chairman Johann Rupert.

Cartier is the crown jewel of the Richemont empire, and the model’s watch and jewellery gross sales are the most important single contributor to the corporate’s gross sales and revenue.

Richemont’s secure of bijou maisons, which additionally embrace Italian manufacturers Buccellati and the not too long ago acquired Vhernier SpA, account for about 70% of Richemont’s total gross sales, based on UBS analyst estimates.

Richemont stated Vigneron will retire and assume the place of chairman of Cartier’s tradition and philanthropy arm whereas working with Ferla on the transition.

Vigneron was as soon as thought-about a possible CEO candidate at Richemont earlier than the Might appointment of Bos, to whom the jewellery manufacturers’ high executives will report.

The corporate has but to call a brand new CEO for Vacheron or for Van Cleef & Arpels.

By Andy Hoffman