Rogerio Fujimori's questions to COMPAGNIE FINANCIERE RICHEMONT AG /FI (CFRUY) leadership • Q4 2023
Question
Rogerio Fujimori from Stifel asked about the contribution of sales mix versus volume and price to the Jewellery Maisons' growth, given the company's less aggressive pricing stance. He also inquired about diverging category trends for watches as China recovers and the U.S. slows, considering wholesale exposure and the cooling preowned market.
Answer
Van Cleef & Arpels CEO Nicolas Bos and CEO Jerome Lambert explained that the positive mix effect was driven by a higher proportion of full-price retail sales and a shift in demand towards higher price point items, such as gold watches. Regarding watches, Lambert and Chairman Johann Rupert emphasized the business is now more resilient due to a higher direct-to-client mix and a focus on timeless models over planned obsolescence. This strategy protects residual value and reduces exposure to wholesale inventory risk during market fluctuations.