LVMH plans to open a second factory in Texas by 2027 as it looks to expand its U.S. presence while trade talks between the United States and Europe continue.
The company already operates a Louis Vuitton plant in Texas, opened in 2019, which helped avoid tariffs during Donald Trump’s earlier term. That facility has since faced operational issues.
The company reported a 4% drop in second-quarter sales to 19.5 billion euros ($22.95 billion), with its fashion and leather goods division falling 9%, both below expectations.
Finance Chief Cecile Cabanis said she expects a positive outcome from the trade negotiations. She said a possible 15% tariff rate would still be a good result for overall customer sentiment.
In China, LVMH noted early signs of improvement despite the luxury market slowdown linked to the real estate crisis. A new Louis Vuitton store in Shanghai drew strong attention and helped boost visibility in the region.
Outside its wines and spirits segment, the group continues to rely on brand pricing power from labels such as Dior, Celine, and Bulgari. But competition is increasing from more affordable brands like Coach and Ralph Lauren and smaller labels such as Miu Miu.
The company is also facing scrutiny over labor practices in the supply chain of its cashmere brand Loro Piana. Earlier this year, LVMH lost its position as France’s most valuable listed company to rival Hermes.
CEO Bernard Arnault has made internal changes, moving former finance head Jean-Jacques Guiony to lead the wines and spirits division. A shareholder motion allows Arnault to remain at the helm for another decade.
He has close ties with Trump and has signaled interest in expanding further in the U.S. if Trump is re-elected.
