LVMH is considering increasing its production capacity in the United States, CEO Bernard Arnault said Tuesday, citing favorable business conditions compared to tax policies in France.
The company, which primarily produces in France, currently operates three Louis Vuitton workshops and some Tiffany jewelry-making sites in the U.S.
Arnault, LVMH’s main shareholder, said American authorities are encouraging further investment and that the company is evaluating its options. Speaking after LVMH’s quarterly results, he noted that U.S.-based factories benefit from tax conditions, while France is proposing additional taxes on large companies to address budget shortfalls.
Arnault and his family attended Donald Trump’s second-term inauguration earlier this month, sitting near business leaders including Elon Musk and Mark Zuckerberg. He previously worked in U.S. real estate after leaving France following François Mitterrand’s election and had invited Trump to open a Louis Vuitton factory in Texas during his first term.
He said business sentiment in the U.S. is improving, while France’s policies are creating uncertainty. LVMH employs more than 40,000 people in the U.S., which accounts for 25% of its global sales.
LVMH reported a 1% rise in fourth-quarter sales to €23.9 billion ($25 billion), showing growth in key brands such as Louis Vuitton and Tiffany. Arnault said the year started with stronger demand and that the group is positioned for further expansion.
LVMH shares fell 3.5% in early Frankfurt trading Wednesday as its sales growth did not match recent results from competitors. Richemont and Burberry posted higher-than-expected quarterly sales, leading to increased market expectations.
