Reply With QuoteAren't their cash reserves something like $5 billion?
Feel sorry for the group as they have just announced a disappointing fourth quarter, sales fell by 4% as demand for watches slumped.
Revenues for the company stood at £2.22 Billion, last year it was £2.15 Billion.
You have got to weep for them !!
Aren't their cash reserves something like $5 billion?
The smartwatch crisis takes its first victim
Nope!Originally Posted by Skyfire
A lot of luxury good makers have announced a really disappointing 2nd half of 2015 results. Bentley ,Rolls Royce and a lot of luxury designer makes. Its to do with teh economic slowdown especially in China where the lion share of luxury goods growth has been.
Not just an economic slowdown but also rules on anti-bribery/corruption.
There is always someone watching and a public servant of the Communist Party really shouldn't be knocking about in a Breguet Tourbillon...
i don't know what Rolex sales have been like, possibly down? And then they decide to have a price increase.......was it 7% extra in Europe?
Serves them right, because they are too expensive and I can't afford them
I'm not the biggest fan of Rolex but i wont say no to one if one landed on my lap!
Why do you keep mentioning Rolex? The thread is about Richemont Group.
Curious as to why people are overjoyed that a large watch company has had a profit reduction. Is this a watch-hating site now?
Perhaps it is because of the comments made by the CEO a while back which personally I think we're completely missinterperated.
Are you referring to the IWC CEO?
I personally think that alot of the Richemont brands, such as IWC, Panerai, their price increases are just too aggressive.
I was under the impression that IWC had lowered some of their prices; as have Patek and possibly other manufacturers. You have only to read the Deloittes 2015 report to understand why.
It's tough out there, and getting tougher.
Errrr no. Patek only did a currency adjustments. In the UK it went down on some models but in EU and Japan for example prices went up.
Not sure which results the O/P is referring to here?;
https://www.richemont.com/images/inv...5_k2d8en3w.pdf
Swatch Group is down 13%.
So, do we hold a party now, or do wait for LVMH's results before we start dancing in the streets?
Regards,
Adam
LVMH announced their results. Watches up 8%. JCB effect at Tag?
Envy of someone or something else's success, rather than finding their own.
Then finding pleasure in the same someone or something else's downturn / misfortune.
I'm not saying everyone exhibits this behaviour, but it is a common trait.
At least that's what I have observed
Well, there goes the party... :-(
Regards,
Adam
I'm not English but I do hate seeing people do well. Mainly because my own life sucks and I'm a massive disappointment to myself.
Figured it was partially down to the nosedive in the Chinese markets as well as values of oil being slashed as well. Suddenly a lot less disposable income in that 'demographic' as there was 12 months ago!
Mostly due to a contraction of the Far East and US markets, as well as the Swiss Franc no longer artificially pegged against the Euro.
In other news, the UK is up, especially at the £500-1000 level, and broke through the 1B CHF worth of sales mark, for the first time – pretty much on a par with what China has dropped to.
http://www.watchpro.com/uk-heads-for...ales-for-2015/
Love the English mentality sometimes!
Excellent
...but what do I know; I don't even like watches!
Its a watch lovers site. Not the money grabbing greedy watch maker lovers site.
Ha ha ha. Tremendous. Reminds me of the great Gore Vidal-ism: "Every time a friend succeeds something inside me dies".
Vahalis's law: As an WIS discussion grows longer, the probability of a comparison involving Rolex or a Rolex model approaches 1"
So other watch makers don't try and make as much as possible off their products, brand image and reputation?
How naive, or is it just envy that certain manufacturers better at the game?
<chortle>
It has been a while since I spoke with any of my ex-colleagues within the Richemont Group so I can't really offer any insight into what is currently working for them and what is not, but the situation back in 2008 (from the perspective of watches and the brands I was closest to) was as follows:
Cartier - strong range but perhaps lacking in sportier models to challenge Omega/Rolex
JLC - steady as she goes
Vacheron - steady as she goes
Baume et Mercier - bit of a problem child
Montblanc - need to raise the game with in-house movements and higher-end offerings
Interesting to see that Cartier and Montblanc seem to have followed the plan. B&M have done well with the Clifton range and have also had a big shake up recently of their AD network but still have something of an identity crisis, IMO.
SGR
Obviously its not nice when a company has a profit reduction however it makes interesting times. When the credit crunch came along in 07/08 as Western demand fell , it was more than compensated with from soaring trade in the Far East etc and coupled with huge price increases the luxury watch.goods market weathered the storm very well and boomed. Along with a roaring trade in the Far East , large prices increases (most Swiss watches have almost doubled since 2007/8) and watches becoming bigger and more flashy .
Now thats all changes with the downturn in the Far East what will be now? the FarEast helped the luxury watch industry boom after the Western downturn in 07/08.
Will this mean more innovation with watches? Relax their grip on the grey market? Release cheaper models/watches?
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