Today 4

Richemont names Matthew Ives to fast-track Dunhill revival into 2026

Bottom Line Impact

If execution stays on track, Dunhill can lift revenue mid single digits and expand EBITDA margin by 150 to 300 bps within 12 months, strengthening Richemont's fashion portfolio positioning and rebuilding Dunhill's brand equity ahead of the 2026 flagship opening.

Executive Summary

Richemont installs a seasoned insider as Dunhill CEO, aligning governance and speed to execute a brand reset ahead of a 2026 Bond Street opening. The move signals a push to lift profitability and sharpen positioning in mens luxury against Berluti, Zegna, and Tom Ford while leveraging Richemont scale.

Actionable Insights

Immediate Actions (Next 30-90 days)
Set a 24 month turnaround scorecard for Dunhill with quarterly gates covering DTC mix 65 to 70 percent, ASP growth 5 to 7 percent, full price sell through 70 percent, and EBITDA margin positive trajectory
Rationale: Clear milestones de risk execution and signal capital discipline across the fashion and accessories portfolio
Role affected:Richemont CEO
Urgency level:immediate
Cap Bond Street total project capex at GBP 20 to 35 million with a hurdle of 25 percent IRR and 3 to 4 year payback, tied to lease incentives and modular fit out to control overruns
Rationale: Flagship economics can be value accretive if disciplined but risk margin drag if costs escalate
Role affected:Richemont CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Concentrate on three hero platforms leather brief and tote, outerwear icons, elevated small leather goods and allocate 60 percent of buy to top 20 percent SKUs
Rationale: SKU focus improves working capital turns and raises gross margin by 150 to 250 bps via depth not breadth
Role affected:Dunhill CEO
Urgency level:short-term
Deploy a London centric CRM and clienteling sprint targeting Richemont watch and jewelry top clients with private appointments and personalization, aiming for 20 percent cross sell penetration
Rationale: Richemont client base offers low cost acquisition and higher basket size versus cold traffic
Role affected:Dunhill CMO
Urgency level:short-term

Strategic Analysis

Next 30 to 90 days likely include an org and assortment review, freeze on non essential campaigns, and pricing architecture reset to raise average selling price by 3 to 5 percent without harming sell through. Expect wholesale door rationalization planning and a London capex and lease negotiation workstream for Bond Street.

Over 6 to 12 months, Dunhill can pivot to a tighter hero product matrix in leather goods and outerwear, targeting 70 percent full price sell through and a 150 to 300 bps EBITDA margin uplift. Bond Street pre opening milestones should lock design by Q2 2026, award general contractor by Q3 2026, and soft open late Q4 2026 to capture holiday traffic.

A credible turnaround raises Richemont fashion and accessories relevance versus LVMH Berluti and Kering Tom Ford by leaning into British quiet luxury and craftsmanship. If executed, Dunhill can capture traveling HNWI spend in London and re engage APAC male clientele, narrowing the gap in mens leather goods where Hermes and Zegna currently outpace share gains.

Tighter SKU count reduces supplier complexity by 20 to 30 percent and shortens lead times by 1 to 2 weeks. Direct to consumer mix expansion lifts retail margins and reduces wholesale exposure, while Bond Street lease and build contracts lock in 18 to 24 months of vendor capacity and specialist artisan requirements for personalization and repairs.

Risks & Opportunities

Primary Risks

  • Execution drift in assortment and pricing could delay margin uplift by 6 to 9 months
  • Macro softness in China and Europe may cap traffic and full price sell through below 60 percent
  • Bond Street capex inflation and contractor delays risk a 10 to 20 percent budget overrun and missing the 2026 peak season

Primary Opportunities

  • Leverage Richemont client data to lift repeat purchase rate by 5 to 8 pts within 12 months
  • Travel rebound into London supports 10 to 15 percent like for like growth for the flagship in first full year
  • Partnerships with British artisans and made to measure services can increase average ticket by 15 to 20 percent

Market Context

Luxury demand remains bifurcated with China normalization slower than expected and Western HNWI spend resilient in destination cities like London. Mens luxury is consolidating around quiet luxury and craftsmanship, benefiting brands with coherent hero products and strong DTC. Richemont has historically underperforming fashion assets versus its jewelry powerhouses, so a focused Dunhill reset can rebalance the group while competing head to head with Berluti and Zegna on leather and tailoring.

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