Richemont Q4/FY - New CEO & COO

Richemont shares jumped over 5% on Friday after the luxury goods company reported a 3% rise in annual sales to a record EUR20.6 billion for the year ending in March. Not bad considering the global slowdown in luxury sales, as reported by competitors.

Fourth-quarter sales dipped 1% at actual exchange rates, but the company's operating profit increased by 13% to EUR4.8 billion, with overall profit at EUR2.3 billion.

Richemont, which owns brands like Cartier, IWC, Mont Blanc, and Van Cleef & Arpels, saw the Americas, particularly the US, surpass Europe in sales. Revenues also accelerated in Japan and the Middle East.

Recently, Richemont acquired 70% of Gianvito Rossi and Italian jewellery maker Vhernier to enhance its portfolio. Johann Rupert expressed optimism about the potential of these acquisitions, citing the significant growth at Buccellati since its 2019 acquisition.

The company has re-established the CEO role, appointing Nicolas Bos, while Jerome Lambert becomes COO. Additionally, Bram Schot will replace SA-based stalwart Dillie Malherbe as non-executive deputy chair, as he approaches retirement.

We like Richemont as a long-term investment for Rand-area investors. We are lucky that it is still listed here at home on the JSE as there are very few high-quality businesses like this one in the world. Richemont remains an anchor position in our local portfolios.