Lvmh, Arnault ceo until 85. And on duties: 'Blame Brussels if we increase US production'

The shareholders' meeting that met at the Carrousel du Louvre in Paris put in place, as expected, a number of pieces of the enormous jigsaw puzzle that is Lvmh, the largest luxury group in the world, with 84.7 billion euro revenues 2024 and a capitalisation of 242 billion euro: firstly, the management's proposal to extend the maximum age for leading the group from 80 to 85 was approved, thus allowing Bernard Arnault, 76, to keep the reins of what is to all intents and purposes his 'creature', of which he is chairman and ceo, firmly in place for another nine years at least.

The raising of the age is a decision taken almost unanimously (approved by 99.18% of shareholders, a majority that in other contexts would be described as 'Bulgarian') and much awaited, despite the fact that Monsieur Arnault has long since begun to test and reward the managerial skills of his five children: Delphine (ceo of Christian Dior), Antoine (chairman of Berluti), Alexandre (deputy ceo of Moët Hennessy since 1 February; since yesterday on the board of Moncler), Frédéric (ceo of Loro Piana since 26 March) and 26-year-old Jean, watch director at Louis Vuitton.

Arnault, who therefore does not intend to leave the helm of Lvmh for some time yet, spoke out very strongly on what - even in the world of luxury, the one with the most price inelastic clientele - is the topic of the moment: Trump's duties and the possible trade war between Europe and the United States.

The owner of Lvmh pointed the finger at Brussels: 'If we end up with high duties, we will be pushed to increase our American production, compulsorily, to avoid duties,' he said at the general meeting. He added that, in that case, 'we will not have to say that it is the companies' fault. It will be Brussels' fault if that happens. These negotiations are vital for many companies in France, and unfortunately, I have the impression that our British friends are more concrete in advancing the negotiations'. Arnault also said that the EU 'is not led by a political power, but by a bureaucratic power that spends its time publishing regulations'.

That of a possible increase in American production of Lvmh products to avoid the impact of the duties seems an almost provocative hypothesis, at least as far as the fashion/leather goods sector is concerned: already in 2019 Louis Vuitton had opened a factory in Texas, only to then, as told by a Reuters investigation, reduce its production capacity to a minimum due to the difficulty of finding competent labour.