financetom
Business
financetom
/
Business
/
LVMH considers widening US footprint as CEO Arnault expresses France fatigue
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
LVMH considers widening US footprint as CEO Arnault expresses France fatigue
Jan 28, 2025 2:38 PM

PARIS (Reuters) - Luxury giant LVMH is "seriously considering" bulking up its production capacities in the United States, CEO Bernard Arnault said on Tuesday, praising a "wind of optimism" in the country that contrasted with the "cold shower" of potentially higher corporate taxes in France.  

LVMH, which makes billions selling "made in France" luxury goods from leather handbags to champagne to the world, so far has little production capacity in the United States besides three Louis Vuitton workshops and some Tiffany jewelry-making sites.

But Arnault, who is also LVMH's main shareholder, said he was open to increasing the company's footprint in the United States soon.  

"It's clear that we are being strongly pushed by the American authorities to continue to build out our presence. In the current context, this is something that we're looking at seriously," he said, speaking to journalists after the company presented quarterly results. 

Arnault and his family attended President Donald Trump's inauguration for a second term earlier this month.  

Arnault and wife Helene Mercier and well as two of his children, Delphine Arnault and Alexandre Arnault, sat just a few metres from Trump's lectern, alongside other billionaires including Tesla founder Elon Musk and Meta Platforms boss Mark Zuckerberg. 

Arnault, who early in his career worked as a real estate developer in the United States after he left France following the election of leftist President Francois Mitterrand, has known Trump for decades. Arnault had criticized Mitterand as anti-business.

During Trump's first term, Arnault invited him to cut the ribbon at a new Louis Vuitton leather atelier in Alvarado, Texas. 

Arnault said U.S.-based factories benefit from attractive tax conditions and that Trump is encouraging investments in what he called a "very dynamic" market. 

At the same time, Arnault - France's richest man - voiced frustration about his home country's bureaucracy and recent plans to additionally tax large companies to plug a hole in the state budget. 

"I've just come back from the U.S. where you can see the wind of optimism going through the country. And when you come back to France after spending a few days in the U.S., it's a bit of a cold shower, I have to say."  

The U.S. market, where the French conglomerate employs more than 40,000 people, is key for LVMH, accounting for 25% of group sales.  

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Telecom Italia's grid sale on track as KKR informs EU of buyout plan
Telecom Italia's grid sale on track as KKR informs EU of buyout plan
Apr 19, 2024
MILAN, April 19 (Reuters) - U.S. investment company KKR has sent European Union antitrust authorities a formal notice about its proposed buyout of Telecom Italia's (TIM) fixed-line access network, the former phone monopoly said on Friday. TIM said the confirmation it had received from KKR indicated that the project was progressing according to schedule. TIM has agreed to sell its...
Evercore consumer dealmaker Taetle is leaving the bank, sources say
Evercore consumer dealmaker Taetle is leaving the bank, sources say
Apr 19, 2024
NEW YORK, April 19 (Reuters) - Adam Taetle, a senior managing director at Evercore ( EVR ) who advised on several transactions in the consumer & retail industry, will be leaving the investment bank, according to people familiar with the matter. Taetle, who joined Evercore ( EVR ) in 2018, recently advised on notable deals including Campbell Soup's ( CPB...
Wipro Beats Revenue Expectations In Q4, Anticipates Steady Growth Driven By Tech Demand
Wipro Beats Revenue Expectations In Q4, Anticipates Steady Growth Driven By Tech Demand
Apr 19, 2024
Technology services and consulting company Wipro Ltd ( WIT )  shares are trading higher after the company reported fourth-quarter results. The company reported gross revenue of INR222.1 billion ($2.67 billion), flat Q/Q, beating the consensus of $2.65 billion.  EPS of 7 cents was in line with the consensus. IT Services revenue declined by 6.4% Y/Y to $2.66 billion. Adjusted constant currency IT Services segment revenue...
--Street Color: Tata Group Reportedly in Talks to Acquire Pegatron's Indian iPhone Production Operations in May
--Street Color: Tata Group Reportedly in Talks to Acquire Pegatron's Indian iPhone Production Operations in May
Apr 19, 2024
10:04 AM EDT, 04/19/2024 (MT Newswires) -- (Street Color news is derived from real time discussions with market professionals globally subscribed to the Street Color Premium Chat service on Bloomberg IB Chat and the ICE IM. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.) ...
Copyright 2023-2025 - www.financetom.com All Rights Reserved