Richemont to replace four CEOs

Worldwide
Published:  01 February, 2017

The Swiss luxury goods holding is said to be appointing new Chief Executives for four of its brands; Dunhill, Jaeger-LeCoultre, Piaget and Vacheron Constantin.

The decision to reshuffle the senior management is reported to have been taken in November 2016, when the Group announced its plans to cut around 2010 jobs causing protests in the town of Le Sentier, situated on the border between France and Switzerland. Read more here.

The company specialised in luxury watchmaking has reported its worst financial results since 2009. As reported by ILM, during a call to analysts in November, Richard Lepeu, Richemont’s CEO due to retire in March 2017, said he wanted bigger gender and nationality diversity as well as younger heads of management.

Andrew Maag, currently Head of Europe, Middle East, India and Africa at UK based Burberry, is to be appointed CEO at Dunhill; Daniel Riedo, CEO, Jaeger-LeCoultre is reported to leave at the end of February for other opportunities, while the Chiefs of Piaget, Juan-Carlos Torres, and Vacheron Constantin, Philippe Leopold-Metzger, are to remain non-Executive Presidents.

Some market analysts fear that these simultaneous changes could cause some short-term concerns as the Group is impacted by the worst crisis suffered by the Swiss watch exports segment since the 2008. Exports dropped 9.9% in 2016, and premium products went unsold on retailers’ shelves in Hong Kong, the industry’s largest market; representing the sector’s worst performance since exports fell 22% in 2009 following the bankruptcy of Lehman Brothers and the subprime mortgage crisis.

The watch federation is said to expect exports to stabilise in 2017.

Source: Bloomberg