Carton maker Richemont hands Lambert over to the digital era

GENEVA (Reuters) – Carton maker Richemont (CFR.SMonday entrusted the managing director of Jérôme Lambert the task of continuing to take the group, especially its watch brands, the digital.

Richemont, also known for its IWC and Piaget watches, dropped out of the role of CEO a year and a half ago, when Richard Lepeu retired, instead appointing an executive committee.

The appointment of Lambert, which coincided with the announcement of a 10% increase in constant currency sales growth over the five months prior to August 31st, was interpreted as a sign that Richemont's majority shareholder and chairman of the board, Johann Rupert, has day-to-day management.

"Jerome's new role sees him taking responsibility for the Group's future growth at a time when consumption habits are changing significantly," Rupert said in a statement.

Lambert, who is stepping down from his position as COO, was seen as a prime candidate to assume the role of CEO after Georges Kern left to lead the rival Breitling brand.

Rupert did not specify the changes, but a recent review of management and the acquisition of online distributors, Yoox Net-a-Porter and Watchfinder.co.uk, have clearly shown that it is essential to make watches Richemont adapted to the digital age.

Lambert will work with the executives of Cartier, Van Cleef & Arpels and the Group CFO on the Executive Committee "to ensure a consistent approach to achieving our common goals," said Rupert.

"Rupert clearly does not see a major crisis on the horizon," said Jon Cox of Kepler Cheuvreux, adding that the nomination indicated that Rupert would return to his role as president.

Slow watches

Richemont said revenue from its jewelry brands, Cartier and Van Cleef & Arpels, particularly in Asia-Pacific and the Americas, helped to increase revenue by 10% in constant currencies at 31 December. August.

Including YNAP and Watchfinder, constant currency sales increased by a quarter to reach 5.67 billion euros (6.54 billion dollars) over the past five months, the group based in Geneva.

The company, which holds its annual general meeting later on Monday, has announced growth in all regions except the Middle East, with double-digit growth in Hong Kong, Korea and Macao and "good growth" in China .

Sales of its watch brands grew by only 4%, with Richemont continuing to adjust its inventory by buying unsold stocks from trading partners, according to Rene Weber, development analyst at Vontobel.

The Richemont shares, which have lost 7% of their value so far this year, rose 1.4% to 07:56 GMT.