Richemont Endures Recession Losses, Announces New CEO

Swiss luxury group Richemont, whose brands include Cartier and Van Cleef & Arpels, reported Friday a 15 percent drop in sales to €2.38 billion ($3.56 billion) from the previous year. Continuing growth in the Asia-Pacific region helped offset significant decreases in sales across the Americas, Europe and Japan.

Cartier performed particularly well in Asia, with double digit growth in sales for the month of October.

Richemont's operating profit for the six month period to September 30 decreased by 39 percent to  €390 million ($584 million).

Executive Chairman Johann Rupert said that while sales were down, Richemont has taken steps to limit the decline in their profitably and maintains a cautious, yet optimistic, outlook.

"The Group's Maisons possess the heritage, creative expertise, products and manufacturing resources – linked to the financial backing of Richemont – which will allow them to emerge from this recession stronger than before," Rupert said.   

Rupert was also announced as Richemont's next chief executive officer when the current CEO Nobert Platt steps down in April due to health reasons.