While meeting the company’s shareholders on Wednesday and answering their questions, president Johann Rupert made his point quite sharply. He did speak out: due to the pandemic, which has heavily affected the market trend and has brought about some instability, the group must act cautiously. When it comes especially on cash.
In other words, the top managers of Richemont, the Swiss luxury group, do not want to bite off more than they can chew, so to speak. “I have cut down my wages by 50% – he pointed out while speaking to WWD -. I think everyone will agree on that: we have been acting prudently, in compliance with a conservative attitude, therefore most safeguarding the interests of our shareholders, colleagues and partners”.
Caution on cash most of all
As highlighted in the financial reports made public so far, the pandemic has “negatively affected” the cash flow of the holding company. That is why “this year Richemont are supposed to handle their own cash assets even more carefully”, as reported by Milano Finanza Fashion. Due to the present situation, the Swiss group will have to focus on their financial management and their governance as well.
“The new attitude of the managing board must mirror both the opportunities and the challenges we are currently facing – reported WWD –, as much as changing trends, shopping habits, digital experience, Chinese buyers and online crimes. This is one of the reasons why we are going to change the group’s board of directors: we had already planned to do it this year, but the virus outbreak turned everything upside down. We now need some time for dealing with such transition”.