Richemont calls time on luxury bulls as another dividend cut – The Wall Street Journal

Hopes from the luxury industry that there could be a quick rebound from the coronavirus have been dashed by Swiss watch empire Richemont as it warned that the "grave economic consequences" of the Covid-19 pandemic could last three years. This was a reality check from Richemont chairman, Johann Rupert normally known for his bearish attitude towards the future which was in sharp contrast with the outlook presented by luxury goods leader LVMH that expected signs of a recovery within weeks.  Bloomberg reported that Richemont was bracing itself for one of the worst years in decades after its operating profit fell 22% in the 12 months through March. This is despite reported signs of a recovery in China where Richemont opened its 462nd store. The South African billionaire said he anticipated a move away from bling and that after the coronavirus 'vulgar display' would be frowned upon even more. The Wall Street Journal's Carol Ryan reports that another dividend cut by Richemont is a warning to investors betting on a rapid rebound. – Linda van  Tilburg

Swiss watchmaker calls time on luxury bulls

By Carol Ryan

(The Wall Street Journal) – Another dividend cut in the cash-rich luxury sector is a warning to investors betting on a rapid rebound – even from a company known for its conservatism.

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