LVMH, the luxury conglomerate behind Louis Vuitton, Christian Dior and Tiffany & Co., reported a strong financial performance for full-year 2024, with revenue reaching $88.3 billion (€84.7 billion), marking 1% growth year-over-year and beating Morgan Stanley analyst expectations of a 1.6% decline. Net profit for the group stood at $20.4 billion (€19.6 billion), underscoring the resilience of the world’s largest luxury group despite an increasingly challenging global economic environment.
The company’s Fashion and Leather Goods segment, its largest division, showed “good resilience,” buoyed by robust sales in Europe and the United States and double-digit growth in Japan. Sephora, part of LVMH’s Selective Retailing group, also delivered a “remarkable performance,” although other segments like Wines and Spirits continued to face normalization in demand.
While LVMH’s financial results highlight its market dominance, chairman and CEO Bernard Arnault raised concerns about the future of its manufacturing base in France. Speaking on the company’s earnings call on January 28, Arnault criticized the high taxes levied on products made in France, describing them as “40%, in some cases.” He hinted that these tariffs could force LVMH to rethink its reliance on French production.
“I just returned from the U.S., and the momentum there is striking,” said Arnault. “Taxes are going down to 15%, workshops we build in the U.S. are subsidized in many states, and the American President [Trump] actively encourages this practice. The market is developing quickly — just look at the new [Tiffany & Co.] store Peter [Marino, architect] opened in New York; it’s an outstanding success with 100-meter-long lines. It’s exceptional.”
“Then, you come back to France, and taxes are set to rise to 40% for companies manufacturing here,” he continued. “It’s hard to believe. Taxing ‘Made in France’ products — it’s a good way to dampen enthusiasm. What a great way to encourage outsourcing! We’ve looked at alternatives, but due to the red tape, those didn’t work out. France really should appoint someone to streamline efficiency, but … well, I’d rather take action quietly.”
The comments come amid growing global competition and evolving consumer preferences, with brands increasingly pressured to balance heritage, sustainability and cost-efficiency.
The earnings call also addressed recent allegations regarding workplace issues at Tiffany & Co., which became part of LVMH in 2021. Reports of staff mistreatment surfaced in Bloomberg on Tuesday, alleging that the employer reneged on a bonus payment pledge. Arnault dismissed the allegations on the earnings call.
“Tiffany was a sleeping beauty for 10 years before the acquisition,” Arnault said during the call. “After we took over, we woke her up — and not everyone welcomed this. Some people are used to being comfortable and resist change when high objectives are introduced. Unfortunately, we had to part ways with some individuals, which led to misrepresentations about what happened.”
“However, the reality is vastly different from what you may have read in the press. In the fourth quarter of 2024, Tiffany achieved a 9% revenue increase, and profits doubled compared to before the acquisition. The New York flagship is the No. 1 luxury store for LVMH, and every new store or renovation boosts revenue by 25%. We remain confident in Tiffany’s trajectory.”
Despite the controversy, Tiffany continues to deliver “further innovation in jewelry and watches,” contributing significantly to LVMH’s Watches and Jewelry segment growth.
Looking ahead, Arnault highlighted plans to expand LVMH’s global leadership, building on its “solid financial structure” and $10.9 billion (€10.5 billion) in operating free cash flow. However, the challenges of tariffs, bureaucracy and workforce concerns remain pressing issues that could shape the group’s future strategies.
