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UPDATE 1-Baccarat CEO sees sales down again in 2014 | Reuters

Riccardi, who also sits on the board of Gucci-owner Kering

and previously worked for Diesel and Procter & Gamble,

joined Baccarat a year ago, following a succession of CEOs at

the company's helm since 2006.

By Astrid Wendlandt

The CEO said the yen's depreciation against the euro hit

sales last year, once translated into euros, even though they

grew in underlying terms. The company makes a little over a

quarter of its turnover in Japan and about a quarter in France.

Last year, Baccarat's sales fell 6.3 percent to 106.5

million euros ($144.7 million), and its 2012 operating profit of

4.68 million was followed by a loss of 6.67 million.

"If this situation does not improve, it will be very

difficult for us to have positive growth in reported terms," she

said, adding that the yen's weakness against the euro was also a

problem for the company.

Baccarat shares, which have lost 5 percent so far this year

after climbing 32 percent in 2013, closed up nearly 4 percent on

Thursday at 216.95 euros, giving the company a market value of

180.2 million euros.

($1 = 0.7359 Euros)

(Adds details, background, CEO comments)

Baccarat said Riccardi's base salary and bonus for 2014,

based on meeting certain objectives, would total 1.5 million

euros, and that she would receive 165,000 euros in rent

allowance and 35,000 euros for her children's education together

with other expenses such as a car.

Riccardi declined to say what her objectives for the year

were aside from improving the company's profitability.

Riccardi said the maker of crystal glasses, jewellery and

bottles for spirits such as cognac had been hit hard by China's

anti-corruption measures, which dented cognac sales in the


She also said Baccarat's jewellery sales, which fell 11

percent last year, had suffered from delays to product


However, she said that if market trends remained the same,

"it would be complicated for us" to return to profit at the net

and operating level in 2014.

PARIS, June 26 Baccarat sales are

expected to remain in decline this year as market conditions

deteriorate in Europe even more than in 2013, the head of the

French crystal specialist told the company's annual general

meeting on Thursday.

Riccardi said she hoped moves to prune Baccarat's product

portfolio to 1,000 items from 6,000, coupled with marketing

around the brand's 250th anniversary this year would eventually

bear fruit and help it return to growth, both in terms of sales

and profit.

She added that Baccarat, which is controlled by investment

firms Starwood Capital and Catterton Partners, planned to open a

luxury hotel in New York in December.

"The situation has worsened in Europe progressively and this

year even more so than last year," Baccarat Chief Executive

Daniela Riccardi said.

(Editing by James Regan)

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