Richemont’s Focus on Saving Cash Pile Damps Hermes Speculation

Cie. Financiere Richemont SA said the world’s largest jewelry maker needs its 1.88 billion-euro ($2.6 billion) cash pile to fund growth of its own brands, damping speculation the owner of Cartier jewelry may buy shares in Hermes International SCA.

“We want to grow organically and we feel we need the cash position to do that,” Richemont Chief Financial Officer Gary Saage said today. “Cash is our fortress; it will finance our investment programs. It allows us to increase dividends in good times and bad, and it allows us to have a competitive advantage to seize opportunities.”