LVMH CEO Bernard Arnault has indicated that the luxury goods conglomerate is seriously exploring expanding its production capacity in the United States amid a luxury sector slowdown. Arnault cited a ‘wind of optimism’ in the US, contrasting it with concerns about potential tax increases in France.
Currently, LVMH’s US production is limited to three Louis Vuitton workshops and some Tiffany jewellery facilities. However, Arnault stated he is open to increasing the company’s US presence. He noted that American authorities are encouraging further investment and that US-based factories enjoy favourable tax conditions. He also described the US market as “very dynamic.”
While praising the US business environment, Arnault expressed frustration with French bureaucracy and recent proposals to increase taxes on large companies. He contrasted the positive atmosphere in the US with a less favourable climate in France, where he is based.
The US market is crucial for LVMH, representing 25 per cent of the group’s sales and employing over 40,000 people.
