Richemont

Compagnie Financière Richemont SA, also 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 and the JSE Securities Exchange.

For other uses, see Richemont (disambiguation).

Compagnie Financière Richemont SA
TypePublic
SIX: CFR
JSE: CFR
IndustryLuxury goods
PredecessorRembrandt Group Limited
FoundedGeneva, Switzerland (1988 (1988))
FounderJohann Rupert
Headquarters
Bellevue
,
Switzerland
Area served
Worldwide
Key people
Johann Rupert (Chairman)[1]
Jérôme Lambert, Group (CEO)
ProductsWatches, jewellery, leather goods, pens, firearms, clothing and accessories
Revenue€14.238 billion[2] (2020)
€1.518 billion[2] (2020)
€931 million[2] (2020)
Total assets€30.461 billion[2] (2020)
Total equity€17.259 billion[2] (2020)
Owner
  • Compagnie Financière Rupert (9.1%)
[1]
Number of employees
35,000 (2020[2])
Divisions
  • Jewellery Maisons
  • Specialist Watchmakers
  • Other Businesses
SubsidiariesSee article section
Websiterichemont.com

The brands it owns include A. Lange & Söhne, Azzedine Alaïa, Baume & Mercier, Buccellati, Cartier, Chloé, Dunhill, IWC Schaffhausen, Giampiero Bodino, Jaeger-LeCoultre, Lancel, Montblanc, Officine Panerai, Piaget, Peter Millar, Purdey, Roger Dubuis, Vacheron Constantin, and Van Cleef & Arpels.

As of November 2012, Compagnie Financière Richemont SA is the sixth largest corporation by market capitalization in the Swiss Market Index. As of 2017, Richemont is the third-largest luxury goods company in the world after LVMH and Estée Lauder Companies.[3]

History

Johann Rupert founded Compagnie Financière Richemont SA in 1988 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.[4][5] The luxury goods investments of Rembrandt Group combined with Rothmans International formed the initial group of Richemont subsidiaries.[6][7]

In March 2007, Richemont and Polo Ralph Lauren Inc. announced the formation of a 50/50 joint venture, the Polo Ralph Lauren Watch and Jewelry Company SÀRL.[8]

In October 2008, the Group divested all of its remaining interests in the tobacco industry.[9]

As of November 2012, Compagnie Financière Richemont SA is the sixth largest corporation by market capitalization in the Swiss Market Index.[10] As of 2014, Richemont is the second-largest luxury goods company in the world after LVMH.[11]

The compensation of the Richemont group's executives increased by an average of 14% in 2018.[12]

Organization

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

Cartier, Van Cleef & Arpels, Buccellati, constitute the Jewellery Maisons.

The Specialist Watchmakers group is composed of A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis, Vacheron Constantin and the joint venture with the Ralph Lauren Watch & Jewelry Co.

The Other Businesses division includes Azzedine Alaïa, Chloé, Dunhill, Lancel, Montblanc, Peter Millar, and Purdey.[1]

Ownership and control

The largest significant shareholder of Compagnie Financière Richemont SA is Compagnie Financière Rupert, a Swiss company that holds shares controlled and principally owned by Johann Rupert. Compagnie Financière Rupert owns 522,000,000 Class "B" shares of Compagnie Financière Richemont SA, representing 9.1% of the equity and 50% of the voting rights. Johann Rupert and Compagnie Financière Rupert also hold 2,836,664 class "A" shares or "A" share equivalents as of the end of March 2016.[13]

Investments

Subsidiaries

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

  • Giampiero Bodino — fine jewellery; based in Milan, Italy
  • IWC Schaffhausen — watches; based in Schaffhausen, Switzerland
  • Jaeger-LeCoultre — watches; based in Le Sentier, Switzerland
  • Officine Panerai — watches; based in Florence, Italy
  • Peter Millar — men's and women's apparel; based in Raleigh, NC, USA
  • Purdey — firearms, clothing, gifts, leather goods, Royal Berkshire Shooting School. Based in London, United Kingdom
  • Roger Dubuis — watches; based in Geneva, Switzerland
  • Van Cleef & Arpels — jewellery, watches; based in Paris, France
  • Vendôme Luxury Group, including:
    • Cartier — jewellery and watches; based in Paris, France
    • Montblanc — writing instruments and watches; based in Hamburg, Germany
    • Baume & Mercier — watches; based in Geneva, Switzerland
    • Chloé — women's clothing; based in Paris, France
    • Dunhill — men's clothing, watches and leather goods; based in London, United Kingdom
    • Piaget — jewellery, watches; based in Geneva, Switzerland
    • Vacheron Constantin — watches; based in Geneva, Switzerland

Joint ventures

Other investments

Former investments

Richemont acquired British clothing retailer Hackett Limited in 1992.[20] On 2 June 2005, Richemont announced its sale to Spanish investment company Torreal S.C.R., S.A.[21][22]

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, [26][27] Richemont's first investment in an American brand.[28] In 2007, Richemont requested to become the majority partner of the joint venture. Mimi So declined and purchased Richemont's stake in the venture.

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.[29][30][31]

In 2015, the Net-a-Porter Group was merged with the YOOX Group in an all-share transaction. Richemont is the largest shareholder in the enlarged Group.[1][32]

Website blocking

In October 2014 the first blocking order against trademark infringing consumer goods was passed against the major UK ISPs by Richemont, Cartier International and Montblanc to block several domains selling trademark infringing products.[33]

Notes
  1. "Richemont Annual Report and Accounts 2015" (PDF). Richemont.com. Retrieved 5 June 2015.
  2. "Annual Report 2020" (PDF). Richemont. Retrieved 12 August 2020.
  3. Global Powers of Luxury Goods 2019
  4. Remgro 2011.
  5. International Directory of Company Histories 2007.
  6. Richemont. "History, including Significant Investments and Divestments". Retrieved 7 January 2017.
  7. Domisse & Esterhuyse 2009, pp. 322-324.
  8. "Richemont and Polo Ralph Lauren announce the formation of The Polo Ralph Lauren Watch and Jewellery Company". Richemont.com. Retrieved 5 March 2007.
  9. "Richemont to Spin Off Its Tobacco Holdings". The Wall Street Journal. Retrieved 2 August 2008.
  10. Swiss Exchange 2012.
  11. European Sales Help Luxury Group Richemont Balance a Decline in Asia
  12. https://www.letemps.ch/economie/salaires-hausse-dirigeants-richemont
  13. "Richemont Company Announcement issued on 20 May 2016" (PDF). Richemont. Retrieved 20 May 2016.
  14. http://www.lefigaro.fr/horlogerie/2018/05/23/30006-20180523ARTFIG00294-baume-la-nouvelle-marque-du-groupe-richemont.php
  15. https://www.letemps.ch/economie/baume-beau-pari-deja-imparfait-richemont
  16. https://journalduluxe.fr/baume-nouvelle-marque-richemont/
  17. https://webluxe.ch/luxe/richemont-lance-baume-nouvelle-marque-montres/
  18. "Ralph Lauren Watch and Jewelry Company to unveil its first timepieces at Salon International de la Haute Horlogerie 2009". Ralph Lauren Watches. Retrieved 1 September 2008.
  19. "Investor relations Shareholders".
  20. Menkes 2010.
  21. Butler 2005.
  22. Richemont 2005.
  23. Mulier, Thomas (3 July 2017). "Richemont Sells Shanghai Tang as China Prefers Foreign Swank". www.bloomberg.com. Retrieved 31 March 2019.
  24. Muret, Dominique (6 December 2018). "Chinese label Shanghai Tang sold to Lunar Capital group". Fashion Network. Retrieved 31 March 2019.
  25. Segreti, Giulia (21 February 2018). "Italian investor looks to rev up Shanghai Tang sales". Reuters. Retrieved 27 May 2019.
  26. Thompson 2004.
  27. Karimzadeh 2004.
  28. Elite Traveler 2010.
  29. Richemont 2012a.
  30. Gelnar 2007, p. A.13.
  31. Reinet 2012.
  32. Richemont, Richemont. "Merger of Net-A-Porter with YOOX completed with a significant one-off accounting gain estimated between € 610 and € 670 million". Retrieved 5 October 2015.
  33. Little, Trevor. "Landmark judgment handed down in dispute between Richemont and ISPs". Retrieved 17 October 2014.

References
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