Bernard Arnault, chairman and CEO of LVMH Moët Hennessy Louis Vuitton SA, has expressed concerns over France’s newly proposed tax measures. He said that these measures incentivize offshoring by taxing domestic production while leaving outsourced companies unaffected. The statement was made via LVMH Presse on X on January 31.
“the proposed tax measures serve as an incentive for offshoring, as they tax Made in France products,” said Arnault. “As for Mr. Leclerc, since he appears eager to defend French SMEs, I suggest that he sell more French products in his supermarkets. and stop squeezing French suppliers to the point of endangering them by constantly pushing for lower prices.”
In response to Michel-Édouard Leclerc’s comments regarding his remarks about the proposed French tax measures, Arnault denied any intention to relocate LVMH. However, he argued that the tax policies themselves encourage relocation by penalizing domestic production while sparing outsourced companies. He also challenged Leclerc to demonstrate support for French businesses by prioritizing local products in his supermarkets instead of pressuring suppliers for lower prices, according to Entrevue.fr.
According to Reuters, on October 10, 2024, French Prime Minister Michel Barnier unveiled a draft budget for 2025 aimed at saving €60 billion through spending cuts and tax increases. The plan includes temporary tax hikes for individuals earning over €250,000 annually and higher levies on corporations with revenues exceeding €1 billion. It also introduces an “unproductive wealth” tax applicable to unrealized gains from assets like Bitcoin.
Arnault is known for revitalizing French couture and shaping the modern luxury industry. A graduate of the École Polytechnique in Paris, he took control of his father’s construction firm before pivoting to luxury fashion by acquiring Christian Dior in 1984. Under his leadership, LVMH expanded its portfolio to include brands such as Givenchy, Fendi, Bulgari, and Tiffany & Co., making it the world’s largest luxury-products company.
Founded in 1987 through the merger of Moët Hennessy and Louis Vuitton, LVMH is a leading luxury goods conglomerate managing a portfolio across fashion, jewelry, cosmetics, and spirits.
