Bernard Arnault, the CEO of Louis Vuitton’s parent company LVMH, has announced plans to open a second factory in Texas by 2027. This move shows the luxury brand’s commitment to expanding in the US despite recent challenges.
Arnault also expressed hope that trade talks between the US and Europe will end positively. He told The Wall Street Journal that he’s urging EU leaders to ease trade tensions with the US. These tensions began during Donald Trump’s presidency, which is also when Louis Vuitton opened its first Texas factory in 2019. That factory was seen as a way to avoid US tariffs on luxury items, but reports from April said it faced several operational issues.
The new announcement comes as LVMH faces falling sales. The company’s latest quarterly report shows a 4% drop in overall revenue, totaling €19.5 billion (around $22.95 billion). Sales in its fashion and leather goods division—its biggest money-maker—fell by 9%, more than expected.
To tackle this slowdown, Louis Vuitton hopes the new Texas factory will boost consumer confidence and help the brand recover from market fatigue. Cecile Cabanis, LVMH’s finance head, said that upcoming US-EU trade decisions could bring positive news, especially if a proposed 15% tax on exports is reduced or removed.
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Besides fashion, the company continues to do well in its wines, spirits, and high-end jewelry brands like Bulgari, Dior, and Celine. These still hold strong pricing power despite rising competition from more affordable brands like Coach, Ralph Lauren, and trendier names like Miu Miu.
In China, where demand for luxury goods has dropped due to the real estate crisis, Cabanis noted signs of improvement. She pointed to the success of Louis Vuitton’s ship-shaped flagship store in Shanghai as proof the brand still excites global shoppers.
Although LVMH is facing tough times now, experts believe this dip is part of a normal cycle affected by inflation, China’s economic troubles, and trade uncertainties. Arnault’s long-standing connection with the US, and especially Donald Trump, may help the company strengthen its American presence in the coming years.
