Richemont expects pick-up in US with election uncertainty now out of way

ZURICH (Reuters) – Richemont (SIX:)’s U.S. business could get a boost now that pre-election uncertainty following this week’s presidential poll is out of the way, although it is too early to say how possible tariff hikes under Donald Trump would affect the luxury company.

Chief Financial Officer Burkhart Grund said on Friday that Richemont had traditionally done well after elections, regardless of which candidate or party had won.

Richemont’s jewellery and fashion and accessories business in the United States and among American customers who travel has been growing “quite consistently,” he told reporters after Richemont’s latest results, with watches also increasing sales.

“We’ve been quite resilient in that volatile environment pre-election, which gives us a good basis for continued growth after the elections,” Grund said, adding that any longer term effects from Trump’s win were “pure speculation.”

Richemont would also monitor possible increases in tariffs, which have been floated by Trump, although the situation was currently unclear.

“We monitor it and we have scenarios in place, but there’s nothing more we can say at this stage,” Grund said.

“It is not the first time that tariffs or import duties, these kinds of things, are on our agenda,” Grund said.

“It is clear that over the last probably 10 to 15 years, tariffs have or duties have trended down, but not always.”