Zuzanna Pusz's questions to COMPAGNIE FINANCIERE RICHEMONT AG /FI (CFRUY) leadership • Q4 2023
Question
Zuzanna Pusz from UBS inquired about performance by nationality, particularly the Chinese consumer's travel and spending habits, and the surprising strength in the Americas. She also asked for specifics on the April price increases for Cartier and Van Cleef & Arpels and the group's long-term plans for expanding production capacity.
Answer
Chairman Johann Rupert explained that the Chinese consumer recovery has been more cautious and focused on services, with significant group travel to Europe not expected until late summer. He noted a slowdown in the U.S. since November due to interest rate hikes but highlighted Richemont's resilience through its diversified global presence. Rupert and CFO Burkhart Grund clarified that recent price increases were in the mid-single-digits (around 5%), not the rumored 8-10%, aligning with a fair pricing strategy. CEO Jerome Lambert and Cartier CEO Cyrille Vigneron confirmed ongoing investments in manufacturing, emphasizing that the primary constraint is the time required to train skilled artisans, not just building new facilities.