There was a lot on the agenda for LVMH’s annual general meeting (AGM), held at the Carrousel du Louvre on Thursday, even before president and CEO Bernard Arnault made a surprise announcement that Jonathan Anderson will design the next Dior Men show in June.
The announcement was in response to a shareholder’s question on Kim Jones’s successor and prompted an official statement from the brand that Anderson is Dior’s new artistic director of menswear.
Anderson aside, Arnault dismissed pessimism about the future of luxury. LVMH’s general meeting came after the company published its first quarter earnings, which missed expectations, sending the company’s stock down 8 per cent on Tuesday. “Our situation is far from worrying, many companies in crisis would like to have this kind of ratio,” he said. “You have to stop thinking in terms of growth and instead think in terms of quality. If we wanted to achieve 10 per cent growth at Louis Vuitton, we’d press a button and tomorrow morning we ll achieve 10 per cent growth at Louis Vuitton.”
Here are the other key takeaways.
US tariffs
US President Donald Trump announced global tariffs (including 20 per cent on products from the EU) on 2 April before backpedalling one week later, pausing most tariffs for 90 days. Tariffs on China, however, have been ratcheted up to 145 per cent, while Canada and Mexico sit at 25 per cent. For everyone else, there’s now a 10 per cent tariff on products imported into the US, which could rise once the current “pause” ends.
On Thursday, Arnault urged the EU commission to negotiate with the US during this 90-day window. “ On the tariffs issue, we have to try to settle it amicably, we have to try to discuss with our American friends to find a solution,” Arnault said. He proposed the creation of a free trade zone between Europe and the United States. “We’ll have to establish a free trade zone with the world s biggest market, and bring back a climate of trust, trade and reciprocal probation. If not, we’ll have to increase production [in the US] to avoid tariffs. If Europe can’t negotiate cleverly, it’ll have this consequence in many companies. But don’t blame companies. It will be Brussels’s fault.”
Pressed by reporters to further comment during a media scrum after the meeting, he said negotiations “deserve the utmost attention from the governments of Europe, including France, because there will be dramatic social consequences if an agreement could not be reached, particularly for our winegrowing industry.” (LVMH owns cognac brand Hennessy and Champagne brands including Moët Chandon and Veuve Clicquot.)
Group managing director Stéphane Bianchi also said during the meeting that companies have inventories in the US to limit the impact of potential tariffs, and that production capacities in the US could indeed be increased to mitigate the impact. “Price adjustment measures could also be considered,” he added. “So we do have compensation levers, but it’s too soon to be more precise.” On Thursday, Hermès announced it will increase prices in the US on 1 May to offset the impact of the new 10 per cent tariffs.
Succession plans
Shareholders approved a change to company bylaws that harmonises the age limit for the chairman of the board and the chief executive officer, which were 75 and 80, respectively, so far. It was raised to 85 (with approximately 99.18 per cent of the votes). It means that Mr Arnault, who is 76, can stay on until he is 85.
The board and, more specifically, a committee chaired by board member Henri de Castries, discuss succession plans on an annual basis, Bianchi said. “These plans are not intended for public disclosure. But they do exist, of course, both in the medium term and in the event of sudden events,” he said.
Executive committee
There have been a number of changes to the executive committee in 2024, namely four departures (Chantal Gaemperle, Chris de Lapuente, Philippe Schaus and Toni Belloni) and two arrivals (Maud Alvarez-Pereyre and Guillaume Motte).
Bianchi stressed the fact that both those who left and those who replaced them have had long careers within the group, a testament to the “stability of LVMH’s management and top management.”
“These moves are also part of a more general generational renewal that is essential to prepare for the future of the group and meet the challenges of tomorrow,” Bianchi said.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Inside Bvlgari’s super-sized jewellery production site
Jean Paul Gaultier taps Duran Lantink as permanent creative director
