Bernard Arnault Says Middle East Conflict Risks Global Economic Crisis
WWD • • business
Key Points:
- Bernard Arnault, CEO of LVMH, warned that the Middle East conflict could cause a global economic catastrophe in 2026 if not resolved quickly, though he remains optimistic about midterm growth prospects.
- LVMH's Q1 revenues fell 5.9% on a reported basis due to the conflict's impact on the Middle East region, but organic growth rose 1%, with the war causing a 1% drag on organic growth.
- Arnault dismissed succession rumors, stating he plans to lead LVMH for another seven to eight years, and highlighted strong demand for new products like Dior's collection and Louis Vuitton's P9 bag.
- The Arnault family increased their stake in LVMH to over 50%, continuing to buy shares despite recent stock price declines, signaling confidence in the group's long-term prospects.
- LVMH is focusing on expansion in markets like China and Africa, with upcoming projects including Dior flagships in Osaka and Milan and a potential Cheval Blanc hotel in Florida, while addressing challenges in Europe’s slower market environment.
