Big exec shakeup at Johann Rupert’s ‘golden child’

Richemont has promoted the heads of its two most important and largest brands to the main management committee as a further sign of a longer-term succession change at the Swiss luxury group. 

Catherine Renier, who runs the Van Cleef & Arpels jewelry brand, and Cartier CEO Louis Ferla will join Richemont’s senior executive committee with immediate effect, according to a statement on Friday. 

It is the latest elevation of in-house talent from the jewellery side of Richemont and follows last year’s reorganization when Jerome Lambert was replaced as CEO by Nicolas Bos, who impressed the 73-year-old chairman and controlling shareholder Johann Rupert with his work building up the Van Cleef brand. 

Lambert, currently Richemont’s chief operating officer, is also moving, stepping down from the committee and board of directors as he heads up watch brand Jaeger-LeCoultre.  

Shares of Richemont rose as much as 2% in early trading. The stock is up about 38% in the past 12 months.

The revamp came not long after Richemont surprised the market with better-than-expected results driven by its jewellery brands.

Sales soared 10% during the three months through December at constant exchange rates, when analysts had expected an increase of less than 1%. 

Jewellery, known as hard luxury, has shown its resilience in the face of more volatile consumer demand for high-end items like handbags and fashion.

The company’s specialist watchmaking unit, while still feeling some pressure from a downturn in Chinese demand, also beat estimates, with revenue falling less than expected.

Further changes unveiled at Richemont Friday will see Chief People Officer Marie-Aude Stocker join the executive committee, while Boet Brinkgreve, head of the Laboratoire de Haute Parfumerie et Beaute, is leaving at the end of April. 

Richemont and French luxury brand Hermes International SCA are currently leading the big luxury groups, outperforming rivals such as Kering SA and LVMH.

Hermes shares rose as much as 5% to a record in early Paris trading on Friday, lifting the company’s market capitalization to more than €300 billion ($314 billion) after fourth-quarter sales jumped almost 18% at constant exchange rates. Analysts were expecting a gain of 11%.