Compagnie Financiere Richemont SA, parent of brands including Cartier, Van Cleef & Arpels, IWC, Dunhill and Chloé, may alter its corporate structure because of planned changes in a favorable Luxembourg tax law.
Compagnie Financière Richemont SA, parent of brands including Cartier, Van Cleef & Arpels, IWC, Dunhill and Chloé, may alter its corporate structure because of planned changes in a favorable Luxembourg tax law.
The company said in a statement Monday that it is considering several options, including whether to split its luxury goods operations from its other interests, which include at 19.3 percent stake in British American Tobacco, because of a change in the status of its wholly owned subsidiary, Richemont SA.
That company, which is based in Luxembourg, has had a tax neutral status since it was formed in 1988. Any dividends paid out of Richemont SA are not subject to a withholding tax. Currently dividends from Richemont's stake in British American Tobacco and other interests are paid through that company.
The special status of Richemont SA and certain other Luxembourg-based holding companies will be abolished at the end of 2010. After that date, they will have to pay a 15 percent tax on all dividends paid to shareholders.
"We're looking to minimize the negative impact on our shareholders, but it's too early to say how we'll be doing that," said a Richemont spokesman Monday. "Today, we simply wanted the market to be aware of the issue, and of the fact that we are exploring various causes of action."
The spokesman added: "All we really want to do is to be able to set up a company structure that will take us through the next 20 years."
Profits at Richemont SA jumped 28 percent in the first half to 824 million euros, or $1.12 billion at average exchange, from 645 million euros, or $816.5 million, on the back of increasing sales and higher gross margins.
The company said Friday that stripping out the profits from its stake in British American Tobacco, the bottom line would have risen 32 percent to 490 million euros, or $667 million, from 371 million euros, or $469.6 million.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews