Business News – Richemont 2016/2017 Revenues & Results Down, New Board Members Appointed

in keeping with expectations, luxurious powerhouse Richemont announced the day past its audited consolidated consequences for the year ended 31 March 2017, plus some appointments for the board, with as an alternative sudden backgrounds.

For the total year 2016, income reduced through 4% at EUR 10,647M (vs. eleven,076M in 2015). working profit is down by 14% at EUR 1,764 M (vs. 2,061M in 2015). The proposed dividend, a key records for shareholders, is on the alternative end increased, at CHF 1.80 in keeping with proportion (+6% compared to 2016). This doesn’t save you Richemont’s inventory to drop five% yesterday.

Richemont mentioned that the income of jewellery, leather goods and writing gadgets grew at the same time as watch income declined, in part because of the purchase-again initiative of sluggish-movers with multi-manufacturers retail companions. The watch division noticed income fall eleven% and working income fell 57%.

alternatively, exports of watches (for the complete Swiss industry), showed symptoms of recuperation (March confirmed +7.5% for exports, first growth after declining for 20 consecutive months). The situation will need to be followed within the coming months, as soon as the mid-year document of Richemont published.

As for markets, Europe was the worst performing area (-9%) whilst sales were up 2% for the Americas. sales for Asia Pacific and Japan had been broadly in step with 2016.

In November 2016, the group hand introduced principal control modifications with new roles for Georges Kern and Jérôme Lambert, who both took their role at the start of April. Kern became head of watchmaking, advertising and marketing and digital. Lambert become appointed Head of Operations, answerable for valuable and local offerings and all Maisons other than jewelry and watchmaking.

Johann Rupert, founder and chairman of Cie. Financiere Richemont SA

additionally, on the annual fashionable meeting, shareholders could be requested to opt for nine new directors to the Board, such as human beings with out an eye/jewelry history. along with within the listing are Clay Brendish, founding father of software program offerings outfit Admiral %, Dr Keyu Jin is an companion Professor of Economics at the London faculty of Economics, Mr Anton Rupert, Johann Rupert’s son, Nikesh Arora, former Google executive, and ultimately, women, Dr Keyu Jin, a Harvard educated chinese language economist and Dr Vesna Nevistic, formerly a senior banker at Goldman Sachs and UBS.

even though confident in the long-term prospects for its Maisons, Richemont remains cautious for the coming months in view of the volatility inside the geopolitical and trading environment. LVMH introduced its 2016 effects earlier this year with sales up 5% at EUR 37,600M (+5% EUR three,468M for the watch and jewelry department). Swatch institution pronounced income down 10.6% at CHF 7’553 M.

Swiss watch exports have been down nine.9% in 2016. but, closing month, the Swiss Watch Federation announced that the enterprise exports had seen their first month-to-month upward push in March after 20 consecutive months of declining numbers. Their cost stood at 1.6 billion Swiss francs, 7.five% better than in March 2016.

To access Richemont’s release, comply with this link (complete PDF record).