Richemont Reports Record Sales for the Year 2023-2024, Appoints Nicolas Bos as new CEO

While the global economic situation might feel rather pessimistic, the luxury business and the watch and jewellery industry continue to post strong results for the year 2023. Following the announcement of a record year for Swiss watch exports in 2023, as well as strong revenues for both LVMH and Swatch Group, it is now time for the other giant of the industry, the Richemont Group, to report record sales for the year ended 31 March 2024, with revenues up 3% at actual exchange rates to EUR 20.6 billion. The group also announces important changes with the appointment of Nicolas Bos (currently CEO of Van Cleef & Arpels) as the new Chief Executive Officer of Richemont, effective 1 June 2024.

For the year ended 31 March 2024 (Richemont Group’s financial year starts on 1 April), the company reports sales up 3% at actual exchange rates and 8% at constant exchange rates, driven mostly by its jewellery brands and retail, each representing 69% of the group’s sales. The revenues of the group are now reported at EUR 20.6 billion, compared to EUR 19.9 billion in 2023. However, operating profit, while still strong at EUR 4.8 billion, is down 5% compared to the previous year, due “to significant adverse currency movements and non-recurring charges” according to the report. The group also reports sales growth across all regions and business areas at constant exchange rates. Most of the growth must be credited to Asia Pacific and Japan, while the Americas and Europe show slightly slower growth. The US is now the group’s largest individual market.

Looking at the Richemont Group’s business areas, the Jewellery Maisons (Cartier, Buccellati and Van Cleef & Arpels) deliver most of the sales and operating margins, as well as a 6% increase in sales over the year. Combined sales of the division are EUR 14 billion. Specialist watchmakers are showing a less positive outcome, yet still reporting 2% growth at constant exchange rates (- 3% at actual exchange rates due to a strong Swiss franc). The division made EUR 3.8 billion in sales over the year, with ALS and VC both reporting robust performances.

While sales are up, it must be noted that considering the large increase in individual prices of watches and jewellery pieces, it could well be that sales were down in volume. The group doesn’t indicate its volumes, but the FHS showed in its statistics that the volume of Swiss watches exported was down at the beginning of 2024. The financial report also indicates that the Richemont Group is experiencing a softening in sales in the fourth quarter (January-March 2024) and predicts that the rebound in China will take time.

Also, Richemont Group has just announced the appointment of Nicolas Bos, currently CEO of Van Cleef & Arpels, to the re-established role of Chief Executive Officer, effective 1 June 2024. He’s also joining the Senior Executive Committee. Jérôme Lambert, previously CEO of Richemont Group, will now act as COO and will report to Bos. This nomination confirms the importance of jewellery compared to watchmaking in the group’s sales.

For more details and a complete report, please visit www.richemont.com.