manufacturing capacity for watch components at a
time when we have experienced shortages. The premises
are also being adapted to provide Cartier with its own,
Geneva-based watch manufacturing facility. This has
enabled Cartier to offer a new limited-edition range
of watches bearing the `Poinçon de Genève' engraving
with official recognition and certification by the Geneva
cantonal authorities. The new watches were premiered
at the Salon International de la Haute Horlogerie (`SIHH')
in April 2008.
launch of watches and jewellery ranges under the Ralph
Lauren name is progressing, with management and design
teams having been set up and product concepts defined.
The first models from the joint venture will be exhibited
at the SIHH in January 2009.
Enterprise Resource Planning IT system, implemented as
part of the Company's long-term strategy of developing
a single global IT solution for its operations and following
the successful launch in the US market in 2006. The in-
house team responsible for the introduction in the US took
on the task of implementing the roll-out at our principal
distribution facility at Fribourg in Switzerland. This was
a major task and not without risk a problem here could
have jeopardised shipments to all of our retail partners
and regional distribution centres around the world.
In August 2007, we switched to the new system and
no delays were experienced in meeting customer orders.
This was a great achievement by everyone involved.
Maisons and regions are now pressing to be brought online
to benefit from the additional functionality that the systems
offer. That is perhaps the best testimony to the success of
our teams involved in the implementation.
has been enhanced by the
Group's initiatives around
the world.
the year when Group operating profit not only exceeded
1 billion for the first time but exceeded 1.1 billion.
Levels of demand were high in all of our markets but
each of the Group's Maisons has worked hard to turn
that demand into sales. Equally, our people have monitored
expenses throughout the organisation and kept these
strictly under control; the 10 per cent growth in sales
has been translated into a 21 per cent increase in
operating profit.
watch component manufacturing businesses, which bolster
our in-house component sourcing capabilities.
specialist manufacturer of watch cases. This family-owned
business is a principal supplier of watch cases to Swiss
manufacturers and has strong connections with the Group,
which date back for decades. The family members viewed
Richemont as an obvious partner to take over the business.
The family connections are being maintained in running
the business and Richemont will be investing to expand
capacity at the principal manufacturing site at Les Breuleux
in the Swiss canton of Jura.
a leading company in the important field of watch
component micropolishing.
component manufacturing activities of the watchmaker
Roger Dubuis SA. The manufacturing facilities are based
Executive Officer's
review