January 29, 2025 - LVMH CEO Bernard Arnault announced plans to potentially increase production capacity in the United States, citing favorable business conditions compared to proposed tax increases in France.
The luxury goods company currently operates three Louis Vuitton workshops and several Tiffany jewelry-making sites in the U.S. Arnault emphasized that U.S. tax policies encourage further investment, contrasting with France's proposed additional taxes on large corporations aimed at addressing budget deficits.
In light of LVMH's recent quarterly results, Arnault noted that business sentiment in the U.S. is improving, while France's fiscal policies create uncertainty. The company employs over 40,000 people in the U.S., which represents 25% of its global sales.
For the fourth quarter, LVMH reported a 1% increase in sales to €23.9 billion ($25 billion), driven by growth in key brands like Louis Vuitton and Tiffany. Arnault indicated that the year began with stronger demand and that the company is well-positioned for further expansion.
Despite the positive sales report, LVMH shares fell 3.5% in early Frankfurt trading, as the growth did not meet the expectations set by competitors such as Richemont and Burberry, which reported higher-than-anticipated quarterly sales.