US EditionBillionaire LVMH CEO Bernard Arnault Warns Of ‘World Catastrophe’ If Iran War Is Unresolved
LVMH said the conflict cut first-quarter organic growth by 1% as tourist spending and retail demand slowed across the region.
- During Thursday's Annual General Meeting in Paris, LVMH CEO Bernard Arnault warned that the Middle East conflict could trigger a "world catastrophe" with severe economic consequences, noting the Iran war halved the luxury giant's first-quarter sales growth.
- Amid the Middle East conflict, luxury revenue growth has declined by roughly 1 to 2 percentage points in the first quarter, with McKinsey Senior Partner Gemma D'Auria describing the situation as a "double whammy" of declining consumer sentiment, traffic, and spending.
- With shares down around 25% this year, the Arnault family increased their stake to over 50% of the group's share capital, even as LVMH reported 1% organic sales growth in the first quarter.
- Dismissing succession speculation, Arnault expressed optimism about the midterm, noting he expects to remain at the group's helm for at least another "seven or eight years" while emphasizing confidence in his five children's operational roles.
- Recovery for the luxury giant depends on a "swift resolution" of the war, Arnault stated, adding that if the conflict persists, the company faces a crisis, though he remains confident in the group's positioning over the next five years.
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13 Articles
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Bernard Arnault is one of the richest men in the world and someone President Donald Trump "really looks up to," but he probably will not like what the luxury goods tycoon had to say about his war causing a "world catastrophe," according to a report from The Daily Beast.Arnault is a French businessman serving as the CEO of LVMH, a conglomerate formed by the merger of the famed fashion house Louis Vuitton and high-end alcohol producer Moët Henness…
Billionaire much admired by Trump warns Iran war may set off 'world catastrophe'
A French billionaire much admired by President Donald Trump warned of the Iran war's catastrophic risks to the global economy.LVMH CEO Bernard Arnault warned Thursday that failure to resolve the Middle East conflict could trigger a "world catastrophe" with severe economic consequences, as the Iran war has already halved the luxury giant's first-quarter sales growth, reported CNBC.“The world is now in a pretty serious crisis in the Middle East,” …
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