Richemont Reshuffles Core Jewelry Division Leadership — 2nd Update

By Andrea Figueras

Richemont appointed new chief executives for its heavyweight brands Cartier and Van Cleef & Arpels, reshuffling its core jewelry division following recent management shifts at the helm of the Swiss luxury group.

The appointments come about a month after the Swiss luxury-goods giant tapped Nicolas Bos to replace Jerome Lambert as group CEO.

Richemont named Louis Ferla, a company veteran who most recently led watchmaker Vacheron Constantin, as CEO of jewelry brand Cartier on Tuesday. Ferla will succeed Cyrille Vigneron, who decided to retire after eight years as head of the brand.

Cartier is Richemont's biggest and most profitable brand, accounting for about half of group sales and around 70% of operating profit, UBS analysts estimated in a research note. The brand was founded in 1847 in Paris and its creations include the Trinity ring and Juste un Clou bracelets.

Since 2017, Ferla has been the CEO of Richemont-owned Swiss luxury watchmaker Vacheron Constantin. He joined the group in 2001 and previously worked at Cartier, where he held various senior executive positions.

While Vigneron is credited with the turnaround of Cartier since he became its CEO in 2016, he is replaced by a candidate with a two-decade career at the company, UBS analysts said. The move points to a well-controlled generational transition within the group, they added.

Vigneron will take over the role of chairman of Cartier Culture & Philanthropy and will work with Ferla to ensure a smooth transition.

Meanwhile, Richemont also named Catherine Renier as CEO of Van Cleef & Arpels, the jewelry and watchmaking brand founded in 1906 in Paris and whose jewelry collections include Alhambra, Perlee and Frivole.

Since 2018, Renier has held the reins of watchmaker Jaeger-LeCoultre, also owned by Richemont, as part of the company's specialist watchmakers division, and will now succeed Bos following his ascension to group CEO.

Renier joined the group in 1999 and has served in a number of positions, including management roles at Van Cleef & Arpels.

Philippe Hermann, who is currently chief financial officer of Jaeger-LeCoultre, will be interim CEO of the brand until a new CEO is announced, the company said.

The changes--effective from Sep. 1--come at a time when luxury companies are grappling with a slowdown in demand. The industry experienced a post-pandemic boom in sales, but the trend came to an end last year as high interest rates and inflation squeezed spending on luxury goods, particularly among aspirational consumers.

For the quarter to the end of March, Richemont's sales grew 2% at constant exchange rates compared with the same period a year before. Sales at the group's jewelry business--home to Cartier and Van Cleef & Arpels--were up 3% at constant currency for the quarter.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 02, 2024 08:35 ET (12:35 GMT)

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