PARIS (AFP) – The world number one LVMH luxury is holding its general assembly in a delicate context on Thursday after being dethroned by its Rival Hermès as the first CAC 40 market capitalization when its sales are flexing.
The French group suffered a fall of almost 8% on the stock market on Tuesday the day after the publication of disappointing sales in the first quarter, with a decline of 2% to 20.3 billion euros.
As a result, LVMH has left its place as a first market capitalization of the Parisian index CAC 40 and the most valued luxury company in the world to its competitor Hermès, in better health and even higher -end positioning.
“We continue to deal with macroeconomic uncertainties and a lack of visibility on external factors. In this context, we remain confident, while remaining vigilant,” said LVMH financial director Cécile Cabanis on Tuesday during an exchange with analysts.
The luxury sector counted on the American market to counterbalance the slowdown in sales in China, but must now face the customs duties announced by Donald Trump.
“We are entering unknown territory with the 90 -day suspension [des droits de douane de 20% annoncés par le président américain, temporairement ramenés à 10%] which can be hoped for it will allow negotiations and perhaps a positive outcome. The worse is never certain, “explained Ms. Cabanis.
In the United States, where LVMH achieves a quarter of its turnover, sales in the first quarter experienced “a slight decrease despite a good performance in mode and leather goods, and in watches and jewelry,” said LVMH, without giving figures.
By presenting the annual results of 2024 in February, CEO Bernard Arnault had said preferred “not to express” about customs duties. “I prefer to try to act quietly,” he said.
He then returned just from the United States where he had attended in good place with his daughter Delphine, CEO of Dior and his son Alexandre, deputy director of Moët Hennessy, to the inauguration of Donald Trump.
– PDG age prologation –
During the General Assembly, it will also be proposed to extend up to 85 years of the CEO age, allowing Bernard Arnault, 76, to stay longer at the head of the world’s number one luxury.
The resolution should be adopted since the Arnault family had 49% of the capital of LVMH and 64.81% of the votes at the end of 2024.
This extension of the age of the CEO “could arouse the distrust of certain investors,” noted the HSBC bank in late March. The CEO threshold had already been noted at 80 years in 2022.
Bernard Arnault has not appointed a successor to date but his five children all work for the group and four of them are on the board of directors.
Delphine Arnault, 50, elder from siblings, is CEO of Dior and member of the LVMH Executive Committee.
Antoine Arnault, 47, is president of Berluti and Loro Piana and in charge of the image and environmental policy of LVMH. He is also Managing Director and Vice-President of the Board of Directors Christian Dior who controls LVMH.
Alexandre Arnault, 32, is Deputy Managing Director of Moët Hennessy, who brings together the champagne, wines and spirits of the group.
Frédéric Arnault, 30, will be from June 10 Managing Director of Loro Piana.
Jean Arnault, 26, is director of marketing and watches development for Louis Vuitton. He is the only one not to be on the board of directors. “He has time, he is young,” said his father in January 2024.
In July 2022, Bernard Arnault had perpetuated family control of LVMH with the reorganization of the agache holding company in a commandity company.
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