LVMH’s Bernard Arnault “Optimistic” Economy Can Avoid Recession

The French luxury goods giant was on a “very good track” regarding its performance for the first six months of the year.

“I am optimistic, you will see the numbers,” Arnault told reporters during a tech event in Paris, referring to his group which owns labels Louis Vuitton and Dior.

Arnault said he was optimistic central banks in the United States and Europe could slow inflation without triggering a recession, noting “the global economy is at a turning point.”

The luxury industry started the year strongly, riding a wave of demand for high-end goods from consumers eager to spend money saved during the pandemic as socialising resumed.

But recent lockdowns in China, a key growth driver for European luxury houses, have prompted concern that demand for high-end fashion and accessories could slow.

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LVMH Expects China to Bounce Back Quickly From Covid-19 Lockdowns

Fashion sales grew by 30 percent in the first quarter, despite a rocky start in the Chinese market, the world’s largest luxury group said.