ZURICH (Reuters) – Richemont (SIX:) business in the US could get a boost now that the pre-election uncertainty following this week's presidential election is behind us, although it is too early to say how possible tariff increases under Donald Trump will impact luxury companies.
Chief Financial Officer Burkhart Grund said Friday that Richemont traditionally performs well after elections, regardless of which candidate or party wins.
Richemont's jewelry, fashion and accessories business in the United States and among traveling American customers has grown “pretty consistently,” he told reporters after Richemont's latest results, and watch sales have also increased.
“We were quite resilient in the volatile environment before the election, which gave us a good basis for continued growth after the election,” Grund said, adding that the long-term impact of a Trump victory was “pure speculation.”
Richemont will also monitor possible tariff increases, which have been proposed by Trump, although the situation currently remains unclear.
“We are monitoring it and we have prepared scenarios, but there is nothing more we can say at this stage,” Grund said.
“This is not the first time that tariffs or import duties, these kinds of things, have been on our agenda,” Grund said.
“It is clear that in the last 10 to 15 years, tariffs or import duties have tended to fall, but not always.”