Johann Rupert's Richemont buys back more unsold watches, knocking profit

Operating profit rose 5 percent to 1.84 billion euros ($2.2 billion) in the 12 months through March, the Geneva-based company said Friday Analysts expected 2.06 billion euros. Buybacks and portfolio transactions led to one-time costs of 208 million euros The maker of Cartier and IWC Schaffhausen timepieces has also been closing underperforming stores and cutting middlemen out of its distribution network.

Following a multiyear slowdown, the company’s watch offerings now include more affordable models, such as the $2,400 Clifton Baumatic. Richemont unveiled Baume, a cheaper sub-brand that it will sell in pop-up stores and online for as little as $560 earlier this week. Richemont also said Eric Vallat will become head of fashion and accessories brands, which is a new role reporting to Chief Operating Officer Jerome Lambert Vallat has been chief executive officer of Remy Martin since 2014. Richemont just finalized its 2.7 billion-euro purchase of Yoox Net-a-Porter SpA as the company revamps . More