Cartier owner Richemont named a new chief executive on Friday as its 73-year-old founder and chairman Johann Rupert hands off some of his responsibilities.
Nicolas Bos, the 51-year-old French head of Richemont’s jewellery brand Van Cleef & Arpels, will start the job on June 1, the Swiss company said.
Richemont posted record annual sales
The announcement came as Richemont posted record annual sales for fiscal year 2023-2024 even as the luxury sector faces weakening demand in major market China.
Bos will assume the revived role of CEO after Richemont experimented with various leadership structures in recent years.
Bos will succeed Jerome Lambert, who worked in a leadership system Rupert described as a “troika”.
“I am not stepping back, but I am asking Nicolas to assume some of the direct line reporting that I used to execute that I thought was cumbersome,” Rupert said in a conference call.
Richemont said in a statement that Bos will “will continue to report to Johann Rupert” and “directly and indirectly oversee” all of the group’s brands and regions.
“Building on Richemont’s expanded scale and stronger focus on retail and jewellery, Nicolas will steer the Group through the next phase of its evolution,” Rupert said in the statement.
“The re-established CEO role will help streamline decision making and optimise operational management,” the South African billionaire said.
Lambert remains on the board and will become chief operating officer, reporting to Bos, from June 1, the group said.
Rupert said that Richemont was unable to return to a “traditional” system before because the conditions were not right, with the Covid pandemic forcing him to retain his power through the crisis.
Shares jumped
Richemont shares jumped following the announcement of the appointment and earnings results.
Sales rose three percent to €20.6 billion in 2023-2024, with a strong performance from the jewellery business offsetting a slump in watches and accessories.
Its net profit soared almost eight-fold to €2.3 billion.
Investors were also reassured by its fourth-quarter performance, as sales were up two percent at constant exchange rates despite a difficult period for the sector.
By Garrin Lambley © Agence France-Presse