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Stanislas de Quercize: Further blow to Richemont as Cartier chief quits

Shares in Richemont dropped nearly 6 per cent yesterday, dragging peers such as the Omega watchmaker Swatch down in their wake

Joanna Bourke
Friday 06 November 2015 21:00 EST
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A weak Asian market has had a major impact on sales at Cartier
A weak Asian market has had a major impact on sales at Cartier (Getty)

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Richemont is losing the head of its Cartier division just as the luxury goods giant is contending with falling watch sales and weak Asian markets.

The Geneva-headquartered company said Stanislas de Quercize, the chief executive of its Cartier unit, is stepping down “for personal reasons”.

He will remain on the group board and his replacement, LVMH’s Japan boss Cyrille Vigneron, will start on 1 January.

Shares in Richemont dropped nearly 6 per cent yesterday, dragging peers such as the Omega watchmaker Swatch down in their wake, as it warned that demand for its luxury watches slowed further last month. Watch sales account for about half of Richemont’s total revenues.

Richemont’s chairman Johann Rupert said: “For the second half of the year, we expect the situation, particularly in wholesale, to continue to be challenging.”

The company, whose brands also include the designer Chloe, Vacheron Constantin watches and Mont Blanc pens, saw overall sales rise 3 per cent at constant currencies to €5.8bn (£4bn) in the first half to 30 September. Net profits rose 22 per cent to €1.1bn.

Retail sales through Richemont’s own shops were strong, although there was a decline in wholesale demand and the cost of absorbing this year’s rise in the Swiss franc against other currencies also hit the group’s profit margins. The company said its increase in sales and profits was largely owing to growing demand for its jewellery.

It also noted an improvement in mainland China, where sales of luxury goods have been hit in recent years by a crackdown on bribery and gifts. Revenues there rose 1 per cent in the first half, although demand fell in Hong Kong, which is the world’s largest market for Swiss watches.

In the current half year, Richemont will record a €620m gain from the merger of its online fashion business Net-A-Porter with its Italian rival Yoox.

Net-A-Porter’s founder Natalie Massenet quit in October just before the deal completed and has since registered a new company called Imaginary Ventures. She is believed to have had a 12-month non-compete agreement with Richemont, although the company has not confirmed it.

A weak Asian market has had a major impact on sales at Cartier

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