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Bernard arnault front economic storm:
Luxury. Nevertheless, international tensions
Bernard Arnault in front of the economic storm that strikes LVMH – Bernard arnault front economic storm
The luxury giant has a 22% drop in net profit in the first half. Moreover, Its CEO multiplies diplomatic meetings to limit the impact of future American taxes on its products.
Bernard Arnault, here in April, is struggling to limit the maximum of new American customs rights.
AFP / thibaud Moritz
Confronted with commercial wars, the world number one luxury, LVMH, saw its net profit drop by 22% to 5.7 billion euros in the first half. Meanwhile, while its CEO, Bernard Arnault, is struggling to limit the maximum of new American customs rights. Furthermore, “We face the front winds. For example, with the economic difficulties of the world economy,” said the billionaire in an interview with “Figaro”.
Sales of the French group fell 4% on the first half at 39.8 billion. Therefore, “To this situation are added geopolitical difficulties. In addition, the decrease in tourist trips to Europe and the United States,” said bernard arnault front economic storm Arnault, however “very optimistic in the medium term”.
His group. For example, confronted as the rest of the sector with a slowdown in consumption in China, must now face the American and Chinese customs duties.
LVMH increases its prices – Bernard arnault front economic storm
Bernard Arnault says he is satisfied with the Cognac agreements passed with China. which lead for LVMH to “increase our selling prices by around 10%”. “This is very important because the United States and China represent 80% of the outlets for cognac.” In the first half of the semester, sales of LVMH wines and spirits (Moët, Hennessy, Ruinart, White Horse, etc.) fell 8% to 2.59 billion euros.
In an interview with “Wall Street Journal»Bernard Arnault excludes a sale of this major division. which has however “dispersed” in recent years. bernard arnault front economic storm He intends to focus on his flagship brands, with the priority “riding and rationalization”.
The billionaire has also chained the meetings in recent months to avoid a trade war between the United States. Europe, meeting the German Chancellor, Friedrich Merz, the head of the Italian government, Giorgia Meloni, as well as the French president, Emmanuel Macron, while talking “regularly” with Donald Trump, specifies the “Wall Street Journal”.
“I do my best to make an agreement with the Americans. in order to avoid being taken in a trade war, which would be extremely prejudicial to businesses,” he said to the American newspaper. “I think President Trump is open in search of a solution. He gave me the impression of being perfectly aware of the situation […] That said, as you know, he wants results. If he does not obtain bernard arnault front economic storm results, he will do what he has promised, ”adds the CEO.
American market
For LVMH. a customs right of 15% “would be a good result”, according to the financial director, Cécile Cabanis: the consequences would not be too damaging on “the confidence and morale” of the customers. LVMH estimates that it could compensate for such a rate with price increase. production of production, especially in the United States. “Obviously, if it’s 10% it’s better than 30%,” she added.
“The most complicated will be for the wine. spirits division, where today we are not in a scheme where we can increase prices,” she noticed during an interview with press agencies, especially since cognac, certain wines and champagne cannot be produced in the United States, unlike fashion and leather goods.
The bernard arnault front economic storm American market represents 25% of LVMH sales. which will open in the United States a new Louis Vuitton workshop, its flagship brand, in Dallas at the end of 2026 or in early 2027. The group already has three workshops Louis Vuitton and four workshops from the American brand Tiffany.
Tensions. commercial wars
“Louis Vuitton, the largest luxury brand on the planet […] Seems to be at the crossroads, “said the HSBC bank in a note in early June, which was” a schizophrenic tension between entry -level (chocolate, beauty) and the top of the range (exclusive leather collections) “, but also between general public fashion items” and more subtle luxury items “.
“Some inconsistencies are probably starting to question consumers,” judges the bank. In the second quarter in the United States, Champagne and Sephora maintained turnover, bernard arnault front economic storm according to the group.
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