Cartier Opens a Crisis in Richemont

Stanislas de Quercize, CEO of the jewelry manufacturer Cartier since 2012, announced by surprise he is leaving his job for personal reasons (according to Reuters, had been off sick for several weeks before announcing his decision).

His replacement from January 1 will be Cyrille Vigneron, who two years ago left Cartier after 25 years in the firm to join LVMH, where he was responsible of the Japan business. De Quercize does not abandon Richemont, as it will be the president of the French unit.

This news has joined Richemont´s announced that its sales fell 6% in October due to lower demand from retailers. Richemont has been badly hurt by falling demand in Asia, where almost half of its revenue came. The appreciation of the Swiss franc has not helped the sales evolution, as prices increased abroad. Just a few weeks ago we mentioned that Swiss watch exports had fallen because of Asian weak demand.

Investors have punished Richemont stock after the two announcements. It has fallen as many as 9%, ending the upward trend that had placed the stock at record highs, above 12,000 Swiss francs per share. After this fall, the company is still up 5% year-to-date and 22% up in twelve months, although the big question is what can happen from now.

Richemont has also published its half-year earnings. Net profit increased by 22% to $1.19 billion, while sales grew by 15% to $6.32 billion. Operating maring was 24%, down from 26% the year earlier.