Big Moves In The Watch Industry As Brand CEO’s Get Reshuffled
3 min read
The past two weeks have seen a game of musical chairs as one announcement after another from luxury watch groups Richemont and LVMH has left the watch community reeling from shock. The latest update was announced early this morning when Ricardo Guadalupe, after serving for two decades as CEO at Hublot decided to step down and transition to the position of Honorary Chairman. Widely recognized as the industry’s great leaders and creating an impactful tenure at Hublot, Guadalupe’s contribution to the brand is surely hard to ignore.
Under his able leadership, Hublot became the top performing watch brand within the LVMH Group, generating CHF 670 million in revenue in 2023, surpassing TAG Heuer’s CHF 615 million, according to the 2024 Morgan Stanley report. Succeeding Guadalupe is Julien Tornare, who will take the reins as the new CEO of Hublot.
Tornare, currently the CEO of TAG Heuer, brings a wealth of experience and a proven track record of leadership in the luxury watch industry. His tenure at TAG Heuer has been marked by significant achievements in brand elevation and market expansion. Filling the position of CEO of TAG Heuer is Antoine Pin. Appointed as General Manager of Bulgari Horlogerie since September 2019, Pin’s extensive international experience and deep-seated passion for watches make him an ideal successor to Tornare. His leadership is expected to drive TAG Heuer’s continued growth and solidify its standing in the competitive luxury watch market.
Taking charge of the position of deputy CEO, Laura Burdese is a valuable addition to the Bulgari C-Suite. Currently serving as vice presisdent of marketing and communication, since early 2022, Burdese will report to Jean-Christophe Babin. It is learned that this new position was specially created for her and will begin her role on September 1st.
With so many new appointments, one might wonder what set this chain of events in motion. LVMH’s Antonio Belloni stepped down from his role as the group’s second-in-command and Managing Director leading the head of the group’s Jewellery And Watches division, Stephane Bianchi to succeed him, LVMH said in a statement. This leaves the post of the head of Jewellery And Watches division vacant giving rise to speculations as to who will replace him. We'll keep an eye out for that announcement. LVMH head, Frédéric Arnault aptly summed up, “These appointments mark the beginning of a new era for Hublot and TAG Heuer, dedicated to the future of our Maisons and the strengthening of their unique positions among leading watch brands.”
But that’s not all. Just last week a similar situation prevailed at the Richemont Group as a series of new CEO’s were announced for its various watch brands. Cartier, the jewel in Richemont’s crown saw its long-standing CEO, Cyrille Vigneron, stepping aside to be replaced by Louis Ferla, who currently holds the same role at Vacheron Constantin. Vigneron’s nine years at the top of Cartier have seen incredible expansion of the company’s high-end watchmaking. To help Ferla into the role, Vigneron will be taking on the position of Chairman of Cartier Culture & Philanthropy come September 1st.
In another surprising turn of events, it was announced that the CEO of Jaeger-LeCoultre, Catherine Rénier, is stepping into the role of CEO at Van Cleef & Arpels where she is replacing Nicolas Bos. As for Bos, he has been elevated to Richemont CEO, replacing incumbent Jérôme Lambert who will remain on the board and as COO. While there has been no communication over who will take on the role of CEO at Vacheron Constantin, the space left by Rénier at Jaeger-LeCoultre will be temporarily filled by the brand’s CFO Philippe Hermann.
Amid these high profile shifts, the Swatch Group released its half yearly report and it does not look good. Experiencing a 14.3% drop in sales in the first half of 2024 (10.7% when adjusted for constant exchange rates) and a staggering 70% decline in its operating margin, which now stands at CHF 204 million or 5.9%. Additionally, net liquidity has decreased by CHF 554 million, a quarter less over just six months. These puzzling figures don’t bode too well for the entire watch industry, however one will just have to wait and watch how things pan out.
