Latest news with #Arnault
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
‘Wolf in cashmere': Billionaire luxury king tries to avoid a crisis
LVMH's market value has fallen by more than a quarter over the past year, to less than €250 billion. Hermes, a luxury brand Arnault tried and failed to buy, and has eyed with envy ever since, has taken LVMH's crown as the most valuable company in the industry, despite generating only €15 billion in sales last year. Adding insult to injury, the Arnault family, which has topped France's rich list since 2017, has also been dethroned by the Hermes clan. Can Arnault turn the ship around? Loading LVMH can't blame the economic environment for all its woes. It raised prices enormously in the post-COVID 'revenge shopping' boom, irking some customers. The price of Louis Vuitton's Speedy 30 canvas tote bag has more than doubled since 2019, for example, while the average price of personal luxury goods in Europe has increased by just over 50 per cent, according to HSBC, a bank. Only a handful of designers, including Chanel and Gucci, have raised prices more. A series of scandals have also damaged the image of some of its brands. Moet Hennessy, LVMH's drinks division, has recently faced accusations of sexual harassment, bullying and unfair dismissal by former employees (which it denies). On July 14, an Italian court placed Loro Piana, an LVMH label that sells cashmere sweaters for more than $US1000 ($1500) a piece, under judicial administration for using suppliers that allegedly violate labour rights. Dior faced similar investigations last year. LVMH's response has been half-hearted: 'Transparency, control and management of this whole ecosystem can sometimes prove a bit difficult,' it said recently. Arnault is attempting to steer towards calmer waters. New bosses have been put in charge of the booze, watches and retailing units. The appointment of Jonathan Anderson as the new creative director of Dior has been cheered by fashionistas. Some investors, however, worry that the companies' problems are deeply rooted. One concern is that decades of pushing fancy clothing and accessories not just to the super-rich but also the merely well-off has made LVMH's brands more vulnerable to economic cycles and dented their image of exclusivity. Even Louis Vuitton, the company's crown jewel, has not been immune. Analysts at HSBC term the brand 'schizophrenic' for its attempt to peddle entry-level products like chocolate and make-up alongside ultra-pricey handbags and luggage. Loading The outlook for Moet Hennessy is more worrying still. As profits have shrunk, the division has announced thousands of job cuts. Analysts point out that young consumers aren't drinking as much as older generations, and when they do, they tend to shy away from spirits such as cognac, which make up a big chunk of LVMH's booze business. The wine and spirits division now contributes less than 10 per cent of LVMH's operating profits, down by roughly half over the past decade. By contrast, Hermes, which has remained focused on selling fashion to the exceedingly wealthy, has continued growing handsomely. Its market value as a multiple of its net profit is now more than twice as high as for LVMH. Brunello Cucinelli, another purveyor of ultra-luxe fashion, is valued at a similar multiple to Hermes. If Louis Vuitton were to be valued at such a multiple, it alone would be worth significantly more than the entirety of its parent company. That has led some to call for LVMH to break itself up. On July 25, reports emerged that it was exploring a sale of Marc Jacobs, a fashion label founded by a former creative director of Louis Vuitton. A bolder move would be jettisoning the troubled drinks business. Diageo, owner of tipples from Guinness to Johnny Walker, already controls a third of Moet Hennessy and has in the past expressed interest in taking the rest of it off LVMH's hands. The British company is currently grappling with its own slump in profits and recently parted ways with its chief executive, but analysts speculate that it could make a deal work by selling off its beer business at the same time. Arnault, aged 76, is navigating all this while making plans for a transition at the helm. He clearly intends to keep the enterprise under family management. All five of his children work in different corners of his empire under the tutelage of experienced executives. His daughter, Delphine, who has been tasked with turning around Dior, is his eldest and the only of his offspring on the executive committee of LVMH, making her the most likely candidate to succeed her father. Yet, there are other possibilities. In February, Alexandre was parachuted in as the deputy head of Moet Hennessy. In March Frederic was put in charge of Loro Piana.
The Age
a day ago
- Business
- The Age
‘Wolf in cashmere': Billionaire luxury king tries to avoid a crisis
LVMH's market value has fallen by more than a quarter over the past year, to less than €250 billion. Hermes, a luxury brand Arnault tried and failed to buy, and has eyed with envy ever since, has taken LVMH's crown as the most valuable company in the industry, despite generating only €15 billion in sales last year. Adding insult to injury, the Arnault family, which has topped France's rich list since 2017, has also been dethroned by the Hermes clan. Can Arnault turn the ship around? Loading LVMH can't blame the economic environment for all its woes. It raised prices enormously in the post-COVID 'revenge shopping' boom, irking some customers. The price of Louis Vuitton's Speedy 30 canvas tote bag has more than doubled since 2019, for example, while the average price of personal luxury goods in Europe has increased by just over 50 per cent, according to HSBC, a bank. Only a handful of designers, including Chanel and Gucci, have raised prices more. A series of scandals have also damaged the image of some of its brands. Moet Hennessy, LVMH's drinks division, has recently faced accusations of sexual harassment, bullying and unfair dismissal by former employees (which it denies). On July 14, an Italian court placed Loro Piana, an LVMH label that sells cashmere sweaters for more than $US1000 ($1500) a piece, under judicial administration for using suppliers that allegedly violate labour rights. Dior faced similar investigations last year. LVMH's response has been half-hearted: 'Transparency, control and management of this whole ecosystem can sometimes prove a bit difficult,' it said recently. Arnault is attempting to steer towards calmer waters. New bosses have been put in charge of the booze, watches and retailing units. The appointment of Jonathan Anderson as the new creative director of Dior has been cheered by fashionistas. Some investors, however, worry that the companies' problems are deeply rooted. One concern is that decades of pushing fancy clothing and accessories not just to the super-rich but also the merely well-off has made LVMH's brands more vulnerable to economic cycles and dented their image of exclusivity. Even Louis Vuitton, the company's crown jewel, has not been immune. Analysts at HSBC term the brand 'schizophrenic' for its attempt to peddle entry-level products like chocolate and make-up alongside ultra-pricey handbags and luggage. Loading The outlook for Moet Hennessy is more worrying still. As profits have shrunk, the division has announced thousands of job cuts. Analysts point out that young consumers aren't drinking as much as older generations, and when they do, they tend to shy away from spirits such as cognac, which make up a big chunk of LVMH's booze business. The wine and spirits division now contributes less than 10 per cent of LVMH's operating profits, down by roughly half over the past decade. By contrast, Hermes, which has remained focused on selling fashion to the exceedingly wealthy, has continued growing handsomely. Its market value as a multiple of its net profit is now more than twice as high as for LVMH. Brunello Cucinelli, another purveyor of ultra-luxe fashion, is valued at a similar multiple to Hermes. If Louis Vuitton were to be valued at such a multiple, it alone would be worth significantly more than the entirety of its parent company. That has led some to call for LVMH to break itself up. On July 25, reports emerged that it was exploring a sale of Marc Jacobs, a fashion label founded by a former creative director of Louis Vuitton. A bolder move would be jettisoning the troubled drinks business. Diageo, owner of tipples from Guinness to Johnny Walker, already controls a third of Moet Hennessy and has in the past expressed interest in taking the rest of it off LVMH's hands. The British company is currently grappling with its own slump in profits and recently parted ways with its chief executive, but analysts speculate that it could make a deal work by selling off its beer business at the same time. Arnault, aged 76, is navigating all this while making plans for a transition at the helm. He clearly intends to keep the enterprise under family management. All five of his children work in different corners of his empire under the tutelage of experienced executives. His daughter, Delphine, who has been tasked with turning around Dior, is his eldest and the only of his offspring on the executive committee of LVMH, making her the most likely candidate to succeed her father. Yet, there are other possibilities. In February, Alexandre was parachuted in as the deputy head of Moet Hennessy. In March Frederic was put in charge of Loro Piana. Loading Arnault refuses to answer questions on the topic of succession. Having raised the age limit for his job from 75 to 80 three years ago, he raised it again to 85 earlier this year. That may mean he will wait until he has steadied the ship before relinquishing control. Even then, some investors question whether it is possible to replace the man who created the modern luxury industry. Arnault still has plenty to do before he hangs up his hat.
Fashion United
2 days ago
- Business
- Fashion United
LVMH's Arnault calls US-EU trade deal 'necessary' but 'not perfect'
Paris - Bernard Arnault, chairman and chief executive officer of LVMH, the world's leading luxury group, has defended the customs agreement reached between the US and Europe. In an opinion piece published in Les Echos on Tuesday, Arnault described the agreement as not "perfect" but "necessary" in the "current context". "The agreement reached (Sunday) between the European Union and the United States has drawn criticism. However, as the leader of a European company, I want to reiterate that a deadlock had to be avoided." Arnault stated. "In the current context, this is a good agreement." He added. "It was not Europe that requested this agreement." Arnault continued. "However, faced with a partner capable of disregarding existing rules, we had to stand firm, without causing a rupture." The chairman and chief executive officer of LVMH, which owns Louis Vuitton, Dior and Celine, as well as the newspaper Les Echos, explained his position. However, he finds it "regrettable" that wines and spirits, massively exported from France and the EU to the US, "are not included in this agreement". LVMH generated almost 7 percent of its revenue from wines and spirits in the first half of 2025, notably thanks to Moët & Chandon champagnes and Hennessy cognac. For Arnault, "Europe knows how to defend its strategic sectors", "a demonstration of intelligence". US President Donald Trump and European Commission President Ursula von der Leyen announced a customs agreement in Scotland on Sunday. Under the agreement, European products exported to the US will be taxed at 15 percent. Hoping to avoid a trade escalation, the EU has also committed to 750 billion dollars in energy purchases, notably aimed at replacing Russian gas, and to 600 billion dollars in additional investments in the US. Emmanuel Macron had not yet reacted to these announcements by Tuesday. However, Prime Minister François Bayrou on Monday referred to a "dark day" for Europe, which, according to him, "is resigned to submission". In June, Arnault's son, Antoine Arnault, joked about his father's privileged relationship with Trump, whom he has known for a long time. "You may have noticed that in addition to his multiple roles, he has recently become a diplomat," Antoine Arnault quipped. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Time of India
3 days ago
- Entertainment
- Time of India
Did ‘Crazy Rich Asians' Michelle Yeoh just confirm BLACKPINK Lisa's relationship with Frédéric Arnault? Recent post sparks debates
Michelle Yeoh may have just revealed the truth about BLACKPINK Lisa 's dating life! The iconic actress recently shared photos from an event she was at, which also had the idol's rumoured boyfriend Frédéric Arnault in attendance. While the actress only posed next to the businessman, it was her social media post's caption that sparked major debates online! Michelle Yeoh's post 'confirms' Lisa's relationship status Recently, the 'Crazy Rich Asians' actress shared a series of photos from a dinner event she attended, which was held in honour of the infamous Italian business mogul Diego Della Valle. She shared photos with Frédéric Arnault, who was also at the event. While the photos themselves were not enough to confirm the news, it was the caption that the actress had posted along with the photos that seemed to light the match. BLACKPINK's Lisa is not affiliated in any way with the event, which sparked rumours amongst fans that the actress had 'candidly' confirmed that Arnault and the K-pop idol are together. Her caption read, 'Love and congratulations to my dearest Diego, and hope to meet u soon, Lisa'. Since the name was mentioned in a post that included photos with Arnault, fans started online debates about how the legendary actress had revealed their relationship status officially! Fans react to the post Fans expressed their excitement over the 'Everything Everywhere All At Once' actress's nod towards the idol. One fan commented, 'Michelle Yeoh knows Lisa and is looking forward to meet her waiittt', while another shared, 'Yeah, cos that pic shows she and her French husband had dinner with frederick thats why she wasnt able to meet Lisa, cos she is on tour. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now Undo I really believe the rumours she secretly married Fred'. Many even shared how the post may also be about Lisa returning to acting with another big gig! The last time the singer was seen on screen was in the third season of 'The White Lotus', where she made her official acting debut. About Lisa and Arnault Although they have not publicly confirmed their relationship, the two have been spotted time and time again at each other's events. Not only that, but the two have been going viral online on many occasions as well. A video from one of Lisa's performances from earlier this year gained traction after someone posted a video of Arnault attending the event, and the two were looking at each other throughout one of the idol's most popular love songs.
Fashion United
4 days ago
- Business
- Fashion United
Louis Vuitton to open new workshop in the US, announces Bernard Arnault
Leather goods maker Louis Vuitton, flagship brand of luxury giant LVMH Moët Hennessy Louis Vuitton (LVMH), will open a new workshop in the US "to meet demand", LVMH Chief Executive Officer Bernard Arnault said on Thursday. "Louis Vuitton already had a workshop in the US when I arrived at LVMH. Given the development of the house in the US, we opened a new one five years ago. We plan to open another one to meet demand, also in Texas," he announced in an interview with Le Figaro. This new workshop will be near Dallas, where Louis Vuitton already has a workshop. The new workshop, inaugurated in 2019 in the presence of Donald Trump, is expected to be delivered in late 2026 or early 2027, a source close to the matter told AFP. LVMH, which makes 25 percent of its sales in the US, already has three Louis Vuitton workshops and four workshops of the American brand Tiffany & Co. (Tiffany) on US territory. "For our American clients, buying a Louis Vuitton product Made in USA is no problem at all," Arnault said. In May, his competitor François-Henri Pinault, chairman and CEO of Kering, which owns Gucci, Yves Saint Laurent and Balenciaga, said that "it wouldn't make sense to have Italian Gucci bags made in Texas." During the first round of negotiations on US tariffs in April, Arnault, who had attended Donald Trump's inauguration four months earlier, said that if "we end up with high tariffs, we will have to increase our American production." One month later, he and his son Alexandre were received at the White House by Trump, who called them "very good friends" in the run-up to preparations for the 2026 FIFA World Cup. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
