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LVMH chief Bernard Arnault to visit China in June -sources

Published 01/06/2023, 15:19
Updated 01/06/2023, 15:21
© Reuters. FILE PHOTO: Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton, attends the LVMH Innovation Award ceremony at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June
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PARIS (Reuters) - LVHM chief Bernard Arnault is set to visit China, two sources told Reuters on Thursday, as European luxury goods makers closely track the pace of recovery of the key market following three years of COVID disruptions.

One of the sources close to the matter said Arnault's visit to the all-important Chinese market, which comes after high-profile visits to the country this week by JPMorgan Chase & Co (NYSE:JPM) CEO Jamie Dimon and Tesla Inc (NASDAQ:TSLA) chief Elon Musk, will take place later this month.

LVMH (EPA:LVMH), home to brands ranging from Moet to Givenchy, declined to comment.

The sources didn't give a reason for the trip or say where in the country Arnault was likely to visit.

The LVMH chairman and chief executive met with Chinese Commerce Minister Wang Wentao in Paris in April at the Avenue Montaigne flagship store of the group's Christian Dior label.

Arnault's daughter Delphine Arnault, CEO of Dior, as well as other top LVMH executives attended the meeting, and the group pledged take part in China's International Import Expo, which will be held in Shanghai in November.

Chinese officials have been eager to emphasize the country is open for business since lifting lockdowns in December. The recovery has been patchy but the luxury sector has outperformed other consumer categories as wealthy consumers have maintained their spending habits on the Mainland.

The planned visit for Arnault comes at a critical time for LVMH's reboot of U.S. jeweler Tiffany, its largest acquisition ever, which it seeks to expand in China as part of a strategy to catch up with larger rival Cartier.

© Reuters. FILE PHOTO: Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton, attends the LVMH Innovation Award ceremony at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June 16, 2022. REUTERS/Benoit Tessier

A rebound in China helped lift LVMH's first-quarter sales, which grew 17%.

Executives from other luxury companies are also emphasizing China, especially as sector sales in the United States show signs of easing off of a strong, post-pandemic surge.

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