LVMH Chairman Remains Confident In Long-Term Growth As He Signals Intention To Stay At The Helm For Up To Eight More Years
Bernard Arnault has warned that escalating tensions in the Middle East could have severe consequences for the global economy, cautioning that the outcome of the conflict will be a decisive factor for business conditions in the year ahead.
Speaking at LVMH Moët Hennessy Louis Vuitton’s annual general meeting in Paris, the group’s Chairman and Chief Executive Officer described the current geopolitical climate as highly uncertain, making short-term forecasts difficult. “In the short term, it has not escaped your attention that the world is now in a fairly serious crisis in the Middle East,” Arnault said, adding that the situation could either resolve gradually or deteriorate into what he characterized as a potential “global catastrophe.”
“It all depends on how this crisis plays out,” he continued. “Either it will be a global catastrophe, so to speak, with extremely serious and highly negative economic impacts… or it will be resolved more quickly somehow, as we all hope.” In the latter scenario, Arnault suggested that business conditions could normalize progressively, allowing growth to resume across LVMH’s divisions.
The remarks come as LVMH reported first-quarter revenues down 5.9 percent on a reported basis, though up 1 percent organically. The group cited disruption in the Middle East — a region that accounts for approximately 6 percent of its business — as a factor that offset an otherwise positive start to the year, with the conflict shaving around one percentage point off organic growth.
Despite near-term volatility, Arnault emphasized a longer-term outlook, underscoring LVMH’s positioning as a family-controlled group that plans across decades rather than quarters. “What excites, motivates and entertains me is what the group will look like… in five years’ time,” he said, expressing confidence that LVMH will maintain its leadership in the global luxury sector.
Arnault also addressed speculation regarding succession, reiterating that he intends to remain in his role for another “seven or eight years.” Shareholders last year approved a resolution allowing him to stay on as chief executive until the age of 85. The topic remains closely watched, particularly as all five of his children — Delphine, Antoine, Alexandre, Frédéric and Jean Arnault — now hold senior roles within the group and took part in the meeting.
On the business front, Arnault pointed to strong demand for recent product launches, including Jonathan Anderson’s debut collection at Dior, which he described as “off to a flying start,” and Louis Vuitton’s P9 bag designed by Pharrell Williams, which has generated waiting lists in the thousands. The executive framed such demand as evidence of LVMH’s continued ability to drive desirability and pricing power in a challenging market.
He also reiterated ambitions for Tiffany, stating that the brand is targeting the number-one position in global jewelry within five years, overtaking Cartier.
While acknowledging ongoing macroeconomic pressures — including a more than 25 percent decline in LVMH’s share price since the start of the year — Arnault signaled continued confidence through share buybacks, with the Arnault family increasing its stake to over 50 percent after acquiring shares worth 1.6 billion euros in 2025 and an additional 1 billion euros so far this year.
Looking ahead, Arnault highlighted opportunities in key markets, including China, which he described as the group’s second-largest market with strong long-term potential, as well as emerging regions such as Africa. At the same time, he pointed to upcoming flagship openings for Dior in Osaka and Milan and potential hospitality expansion through Cheval Blanc.
In sum, while geopolitical instability continues to cloud the near-term outlook, Arnault’s message to shareholders remained consistent: uncertainty may shape the immediate environment, but the group’s long-term trajectory — supported by brand strength, global reach and sustained investment — remains firmly intact.