Richemont, the Swiss luxury goods conglomerate, is optimistic about the potential for growth in its U.S. business following the resolution of election uncertainties. With the presidential election behind it, Richemont’s Chief Financial Officer, Burkhart Grund, expressed confidence in the company’s resilience and future prospects in the American market. However, potential risks, such as tariff hikes under the new administration, remain an area of cautious observation.
The luxury brand, known for its high-end jewelry, fashion, and accessories, has seen steady growth in the U.S. in recent years. Richemont’s performance has been particularly strong among American customers, including those who travel abroad. Grund highlighted that the company’s ability to thrive in the volatile pre-election environment sets a solid foundation for continued expansion in the post-election period.
“Historically, Richemont has shown strong performance following elections, regardless of the winning party,” Grund noted. “The election cycle always introduces some uncertainty, but we’ve been resilient, and we are well-positioned for future growth now that the political landscape has stabilized.”
While Grund remains optimistic about the company’s future, he acknowledged the ongoing risks posed by trade policies, specifically the possibility of increased tariffs under U.S. President Donald Trump. Trump has previously suggested tariff hikes on luxury goods, which could potentially impact Richemont’s operations in the U.S. market. Although the situation remains fluid, Richemont is monitoring the situation closely and has prepared contingency plans.
“We are keeping a close eye on potential tariff increases and trade policies,” Grund said. “While it is still uncertain what impact this will have, we have contingency scenarios in place and are ready to adjust if needed. This isn’t the first time tariffs have been a topic of discussion, and while duties have generally trended down in the past 10 to 15 years, we remain vigilant.”
Despite the unknowns, Grund is confident that Richemont’s diversified portfolio, which includes leading brands like Cartier, Van Cleef & Arpels, and Montblanc, will continue to fuel strong sales growth, particularly as the luxury market rebounds post-election. The company’s continued success in the U.S. will likely remain a key driver of its global performance, and Richemont is well-prepared to navigate potential challenges on the horizon.
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