Richemont announces changing of the guard amid profit plunge

Geneva - Richemont [JSE:CFR], the maker of Piaget jewelry and IWC Schaffhausen timepieces, said chief executive officer Richard Lepeu and chief financial officer Gary Saage will retire next year as it reported a decline in first-half profit.

Deputy chief financial officer Burkhart Grund will replace Saage, the Geneva-based company said in a statement on Friday. Johann Rupert will remain executive chairperson.

Operating profit fell 43% to €798m in the 12 months to September. Last month, the company estimated a 45% decline, and analysts had predicted €765m.

Ebbing demand from Asia to the US has weighed on the Swiss watch industry, exacerbated by slowing tourist flows to Europe following terrorist attacks. The Swiss watch industry is suffering its longest slump in exports since monthly records began in 1988.