Luxury Giant LVMH Considers Expanding US Production Facilities
LVMH, the esteemed luxury conglomerate, is contemplating significantly enhancing its production capabilities within the United States, as stated by CEO Bernard Arnault. Arnault highlighted the "wave of optimism" prevailing in the country, contrasting it with the potential "dampening effect" of increased corporate taxes in France.
Despite its substantial revenue generated from internationally renowned "made in France" luxury items, LVMH currently possesses limited production capacity in the US, with the exception of three Louis Vuitton workshops and several Tiffany jewelry-making facilities. However, Arnault, the primary shareholder of LVMH, expressed his willingness to expand the company's presence in the US in the near future.
"It is undeniable that we are facing significant encouragement from American authorities to further establish our presence. Given the current circumstances, we are seriously considering this move," Arnault remarked to journalists following the company's quarterly earnings presentation.
Arnault and his family notably attended President Donald Trump's inauguration for a second term earlier this month. They were seated in close proximity to the podium, alongside other prominent figures such as Tesla founder Elon Musk and Meta Platforms CEO Mark Zuckerberg.
Throughout his career, Arnault has maintained a longstanding relationship with Trump, dating back to his early days as a real estate developer in the US. Arnault had previously criticized former French President François Mitterrand for his perceived anti-business stance.
During Trump's first term, Arnault played a role in the inauguration of a new Louis Vuitton leather atelier in Alvarado, Texas. He emphasized the favorable tax conditions for factories in the US, as well as Trump's promotion of investments in a market he described as "highly dynamic."
Simultaneously, Arnault, France's wealthiest individual, expressed his dissatisfaction with his home country's bureaucratic hurdles and the proposed imposition of additional taxes on large corporations to address budget deficits.
"Having recently returned from the US, one can witness the surge of optimism permeating the country. Upon my return to France after spending several days in the US, I must admit that it feels somewhat like a cooling experience," Arnault stated.
The US market, home to over 40,000 LVMH employees, represents a crucial revenue generator, contributing approximately 25% to the group's overall sales.