LVMH is looking to boost its manufacturing in the US to cushion the blow of Donald Trump’s tariffs.
Boss Bernard Arnault said in January he was ‘seriously considering’ adding to the French luxury goods giant’s existing facilities across the Atlantic, which includes a Louis Vuitton workshop in Texas and two in California.
Asked about bulking up its US presence yesterday, chief financial officer Cecile Cabanis said: ‘We will see at what pace and how much.’
The firm, whose brands include Moet, Louis Vuitton and Givenchy, confirmed fears of a luxury slowdown as it posted a slump in sales for the first three months of the year. Arnault – who attended Trump’s inauguration – had hoped rich Americans splashing out on luxury goods would offset a slowdown in demand in China.
But LVMH shares have fallen 8 per cent since the US President announced a barrage of global tariffs – fuelling fears of an economic slowdown. Sales fell 3 per cent to £17.5billion over its first quarter.
There are concerns the luxury industry will take a huge hit in the trade war between the US and China.
Tariff target: LVMH, whose brands include Moet, Louis Vuitton (modelled by Naomi Campbell) and Givenchy, confirmed fears of a luxury slowdown
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