Richemont Taps Vacheron Head Louis Ferla as CEO of Cartier — Update
By Andrea Figueras
Richemont said it appointed Louis Ferla, a company veteran who most recently led watchmaker Vacheron Constantin, as chief executive officer of core jewelry brand Cartier, continuing a reshuffle of the Swiss luxury group's leadership ranks.
The shift at the helm of one of Richemont's heavyweight brands follows the appointment of Nicolas Bos as group CEO last month, replacing Jerome Lambert.
At Cartier, Ferla will succeed Cyrille Vigneron, who decided to retire after eight years as head of the brand, the group said Tuesday.
The change comes at a time that luxury companies are grappling with a slowdown in demand. The industry experienced a postpandemic boom in sales, but the trend came to an end last year as high interest rates and inflation squeezed spending on luxury goods, particularly among so-called aspirational consumers.
For the quarter to March, Richemont's sales grew 2% at constant exchange rates compared with the same period a year before. Sales at the group's jewelry business--home to Cartier and Van Cleef & Arpels--were up 3% at constant currency for the quarter.
Since 2017, Ferla has been the CEO of Richemont-owned Swiss luxury watchmaker Vacheron Constantin. He joined the group in 2001 and had previously worked at Cartier, where he held various senior executive positions.
Cartier is Richemont's biggest and most profitable brand, accounting for about half of the group's sales and around 70% of its operating profit, UBS analysts estimated in a research note. The brand was founded in 1847 in Paris and its creations include the Trinity ring and Juste un Clou bracelets.
While Vigneron is credited with the turnaround of Cartier since he became its CEO in 2016, he is replaced by a candidate with a two-decade career at the company, the UBS analysts said. The move points to a well controlled generational transition within the group, they added.
Vigneron will take over the role of chairman of Cartier Culture & Philanthropy and will work with Ferla to ensure a smooth transition, the company said. Both changes are effective Sept. 1.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
July 02, 2024 05:30 ET (09:30 GMT)
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