Richemont Explained

Type:Public (Société Anonyme)
Predecessor:Rembrandt Group Limited
Foundation: in Geneva, Switzerland
Founder:Johann Rupert
Location City:Bellevue
Location Country:Switzerland
Area Served:Worldwide
Key People:Nicolas Bos (CEO)
Jérôme Lambert (COO)
Johann Rupert (Chairman)
Industry:Luxury goods
Revenue: €19.95 billion[1]
Revenue Year:2023
Operating Income: €5.031 billion
Income Year:2023
Net Income: €0.301 billion
Net Income Year:2023
Assets: €40.89 billion
Assets Year:2023
Equity: €19.02 billion
Equity Year:2023
Num Employees:33,959
Num Employees Year:2023
Owner:Compagnie Financière Rupert (Rupert family) (10% equity, 51% voting power)
Subsid:See § Subsidiaries

Compagnie Financière Richemont S.A., commonly known as Richemont, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont produces and sells jewellery, watches, leather goods, pens, firearms, clothing, and accessories. Richemont is publicly traded as CFR on the SIX Swiss Exchange[2] and the JSE.[3]

The brands it owns include A. Lange & Söhne, Alaïa, AZ Factory, Baume & Mercier, Buccellati, Cartier, Chloé, Delvaux, Dunhill, IWC Schaffhausen, Jaeger-LeCoultre, Montblanc, Mr Porter, Net-a-Porter, Panerai, Piaget, Peter Millar, Purdey, Roger Dubuis, Serapian, The Outnet, TimeVallée, Vacheron Constantin, Van Cleef & Arpels, Vhernier, Watchfinder & Co., and Yoox.

As of 2017, Richemont was the third-largest luxury goods company in the world after LVMH and Estée Lauder Companies.[4] As of October 2023, Compagnie Financière Richemont S.A. was the sixth-largest corporation by market capitalization in the Swiss Market Index.

History

Johann Rupert founded Compagnie Financière Richemont S.A. when he spun off the international assets of Rembrandt Group Ltd. (now Remgro Limited), a South Africa-based company founded in the 1940s by his father, Anton Rupert. The division, originally founded on 5 March 1979 as Intercontinental Mining and Resources S.A., was later renamed IMR Group S.A. on 31 March 1987 and finally Richemont S.A. on 17 August 1988. The spin-off was completed on 20 September 1988. The luxury goods investments of Rembrandt Group combined with Rothmans International formed the initial group of Richemont subsidiaries.[5]

In October 2008, the Group divested all of its remaining interests in the tobacco industry.[6]

As of 2014, Richemont is the second-largest luxury goods company in the world after LVMH.[7]

In 2015, Richemont's Net-a-Porter Group was merged with the YOOX Group in an all-share transaction.[8] [9] In August 2022, Richemont announced the prospective sale of a 47.5% stake in Yoox Net-a-Porter (YNAP) to Farfetch in exchange for Farfetch shares, and the sale of a 3.2% stake to Mohamed Alabbar.[10] In January 2024, Farfetch was acquired by Korean e-commerce company Coupang,[11] and delisted,[12] which ended Richemont's planned sale of the YNAP majority stake.[13] [14]

In 2018, Jérôme Lambert was named CEO of Richemont Group.[15]

The compensation of the Richemont group's executives increased by an average of 14% in 2018.[16]

In July 2023, Richemont acquired a 70% stake in Italian shoemaker Gianvito Rossi.[17]

As of October 2023, Compagnie Financière Richemont S.A. was the sixth-largest corporation by market capitalization in the Swiss Market Index.[18]

In May 2024, Nicolas Bos, the head of Van Cleef & Arpels was appointed CEO effective June 1 2024, replacing Jérôme Lambert. Jérôme Lambert would stay at Richemont Group as Chief Operating Officer reporting to Bos.[19]

In May 2024, Richemont acquired Italian jewellery brand Vhernier for an undisclosed sum.[20]

Organization

Compagnie Financière Richemont S.A. organizes its business activities into three operating divisions: Jewellery Maisons, Specialist Watchmakers, and Other Businesses.[1]

Cartier, Van Cleef & Arpels, and Buccellati constitute the Jewellery Maisons.[1]

The Specialist Watchmakers group is composed of A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis, and Vacheron Constantin.[1]

The Other Businesses division includes Alaïa, AZ Factory, Chloé, Delvaux, Dunhill, Montblanc, Peter Millar, Purdey, and Serapian.[1]

Ownership and control

As of 2023, Compagnie Financière Rupert, a Swiss company that holds shares controlled and principally owned by Johann Rupert, was the only significant shareholder of Richemont with 3% or more of the voting rights. It held 6,263,000 Richemont Class "A" shares and 522,000,000 Richemont Class "B" registered shares, representing 10% of the equity of the company and controlling 51% of the company's voting rights.[21]

Investments

Subsidiaries

Richemont's portfolio is made up of Maisons (brands).

The following companies are wholly owned subsidiaries of Compagnie Financière Richemont S.A., unless otherwise noted.[1]

Jewellery

Specialist watchmakers

Fashion and accessories

Former investments

Richemont acquired British clothing retailer Hackett Limited in 1992. On 2 June 2005, Richemont announced its sale to Spanish investment company Torreal S.C.R., S.A.

In 1998, Richemont bought a controlling stake in Shanghai Tang.[23] In July 2017, Richemont announced that it had sold Shanghai Tang to a group of investors headed by Italian entrepreneur Alessandro Bastagli.[24] [25]

In 2000, the Group sold its minority stake in Vivendi, representing its exit from all previous media interests, which had included NetHold and Canal+.

Richemont and Mimi So formed a joint venture in 2004, Richemont's first investment in an American brand. In 2007, Richemont requested to become the majority partner of the joint venture. Mimi So declined and purchased Richemont's stake in the venture.

Richemont and Polo Ralph Lauren Corporation formed a 50/50 joint venture called The Polo Ralph Lauren Watch and Jewelry Company, S.A.R.L., in March 2007.[26] The joint venture lasted until 2018.[27]

In 2008, Richemont spun off all of its non-luxury goods businesses, principally Richemont's stake in British American Tobacco, into a newly formed, separately traded holding company, Reinet Investments S.C.A.

In 2018, Richemont sold Lancel to the Italian leather goods company Piquadro Group.

Website blocking

In October 2014, the first blocking order against trademark-infringing consumer goods was passed against the major British Internet service providers by Richemont, Cartier International and Montblanc to block several domains selling trademark-infringing products.[28]

References

Notes and References

  1. Web site: Annual Report and Accounts 2023 . 27 November 2023 . Richemont.
  2. Web site: RICHEMONT N . . 30 November 2023.
  3. Web site: Last . First . List of companies with secondary listings on the JSE (as at 30 June 2023) . . 30 November 2023.
  4. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/gx-consumer-business-gplg2019-report.pdf Global Powers of Luxury Goods 2019
  5. Web site: Richemont. History, including Significant Investments and Divestments. 7 January 2017. 26 November 2015. https://web.archive.org/web/20151126002853/https://www.richemont.com/about-richemont/history-including-significant-investments-and-divestments.html. dead.
  6. Web site: Richemont to Spin Off Its Tobacco Holdings. The Wall Street Journal. 2 August 2008.
  7. News: European Sales Help Luxury Group Richemont Balance a Decline in Asia (Published 2014) . The New York Times . 15 May 2014 . https://web.archive.org/web/20230602141305/https://www.nytimes.com/2014/05/16/business/international/luxury-group-richemont-shows-strong-sales-in-april.html . 2023-06-02 . live . Clark . Nicola .
  8. Web site: Richemont Annual Report and Accounts 2015. Richemont.com. 5 June 2015. August 6, 2023. https://web.archive.org/web/20230806044715/https://www.richemont.com/media/ozuml3nq/annual-report-2015.pdf. live.
  9. Web site: Richemont. Richemont. Merger of Net-A-Porter with YOOX completed with a significant one-off accounting gain estimated between € 610 and € 670 million. 5 October 2015. 31 March 2017. https://web.archive.org/web/20170331002821/https://www.richemont.com/press-centre/company-announcements.html?view=article&id=449. dead.
  10. News: Faithfull . Mark . Farfetch Marches On As It Acquires Major Stake In Yoox Net-A Porter . 29 November 2023 . Forbes . 24 August 2022.
  11. Web site: Adegeest . Don-Alvin . Coupang finalises Farfetch acquisition . . 16 May 2024 . 31 January 2024.
  12. Web site: Parisi . Danny . Weekend Briefing: Why are so many publicly traded brands going private? . . 16 May 2024 . 18 February 2024.
  13. Web site: Douglass . Rachel . Farfetch sold to South Korea's Coupang, gets 500 million dollar injection . . 16 May 2024 . 18 December 2023.
  14. News: Mulier . Thomas . Morpurgo . Giulia . Farfetch Finds Rescuer With $500 Million Loans From Coupang . 16 May 2024 . . 18 December 2023.
  15. News: DeMarco . Anthony . Jérôme Lambert Named CEO Of Richemont Group . 16 May 2024 . Forbes . 10 September 2018.
  16. News: Salaires en hausse pour les dirigeants de Richemont. Le Temps. 29 May 2019.
  17. News: 2023-07-28 . Richemont buys majority stake in Italian luxury shoemaker Gianvito Rossi . 2024-07-03 . Reuters.
  18. Web site: Swiss Market Index SMI Total Return . . 29 November 2023 . 31 October 2023.
  19. Web site: Richemont Elevates Bos to Group CEO After Van Cleef Sales Surge . 2024-05-17 . www.bloomberg.com.
  20. Web site: Shoaib . Maliha . 2024-05-07 . Richemont grows jewellery portfolio with sculptural brand Vhernier . 2024-05-23 . Vogue Business . en-US.
  21. Web site: Capital structure . 30 November 2023 . Richemont.com.
  22. Web site: Hale . Thomas . 2024-06-15 . Yoox Net-a-Porter exits China to focus on more profitable markets . 2024-07-03 . Financial Times.
  23. News: Richemont Sells Shanghai Tang as China Prefers Foreign Swank. Mulier. Thomas. 2017-07-03. Bloomberg.com. 2019-03-31.
  24. Web site: Chinese label Shanghai Tang sold to Lunar Capital group. Muret. Dominique. 2018-12-06. Fashion Network. en-UK. 2019-03-31.
  25. News: Italian investor looks to rev up Shanghai Tang sales. Segreti. Giulia. 2018-02-21. Reuters. 2019-05-27. en.
  26. Web site: Polo Ralph Lauren and Richemont announce the formation of The Polo Ralph Lauren Watch and Jewelry Company . investor.ralphlauren.com . 16 May 2024 . 5 March 2007.
  27. Web site: Maillard . Serge . What Ralph Lauren's Watchmaking Strategy Reveals . EuropaStar . 16 May 2024 . October 2020.
  28. Web site: Little. Trevor. Landmark judgment handed down in dispute between Richemont and ISPs. 17 October 2014. 24 October 2014. https://web.archive.org/web/20141024091307/http://www.worldtrademarkreview.com/blog/Detail.aspx?g=b58435a6-3291-4bd7-a347-e14049a2731e. dead.

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