Dominique Vidalon and Emma Rumney

PARIS/LONDON (Reuters) - Remy Cointreau on Wednesday abandoned his 2030 sales growth ambitions, saying tariffs and ongoing slowdowns in the U.S. could derail plans for the fiscal year and beyond.

But Remy Martin Cognac and Cointreau Liqueur's shares have been compatible with tariffs and gliding sales efforts in major U.S. and Chinese markets, which rose almost 6% after executives said the worst-case scenario was after sales and profits fell.

"We think this difficult phase is now behind," outgoing CEO Eric Vallat told investors in his final results speech, while adding that Remy's 2030 goal is a goal of smart digital growth in sales, which seems no longer possible.

He said uncertainty, tariffs and a lack of U.S. sales recovery meant that there was no longer a “necessary condition to guarantee it.”

Varat added that upcoming CEO luxury goods veteran Franck Marilly will build his own strategic roadmap.

Remy joined peers Diageo and Pernod Ricard to withdraw sales targets that are widely considered ambitious as expensive liquors across the industry slowed sharply compared to previous booms.

However, Remy sold 70% of Cognac, mainly in the United States and China, among drinkers in both countries, brandy and both governments suffered more than their peers.

Remy said confirming temporary steep tariffs imposed by China on EU brandy, the U.S. imposes 20% on EU imports, the UK’s 10% tax rate and Barbados (if confirmed) will hit operating profits after the mitigation measures.

Barclays analyst Laurence Whyatt has a clearer impact on tariffs, allowing investors to adjust their expectations, thus helping Remy stock be higher.

"Any tariff increase is preferential," he continued. Remy also took gratifying steps to simplify his business.

Vallat and finance chief Luca Marotta told investors that Remy had reduced the number of employees in 2022/2023 by 9% and would cut the number of its eau de vie purchases - this is the number of unmarried brandy used to make its interventions, up to 45%.

Meanwhile, U.S. stocks have been reduced by about €60 million, which is worth less than 1920 levels, Vallat said.

Even without brandy purchases purchased by U.S. consumers, sales will resume mid-range growth in the fiscal year, thanks in large part to the easier base of comparison with the steep decline of 2024/25, Remy said.