Bernard Arnault Criticizes French Tax Policies Amid LVMH’s 2025 Profit Decline

During the presentation of LVMH's 2025 financial results on January 27, 2026, CEO Bernard Arnault sharply criticized the French government's tax approach, particularly targeting the exceptional surtax imposed on large corporations. Arnault accused France of being "against businesses," arguing that the government's aim to "tax as much as possible" is harmful and leads to increased unemployment.

LVMH reported a 13% drop in net profit to €10.9 billion and a 5% decrease in revenue to €80.8 billion for 2025. Arnault attributed this decline primarily to the surtax and adverse economic and geopolitical conditions. He cited factors including trade tensions initiated by former U.S. President Donald Trump and unfavorable currency fluctuations. Despite these burdens, Arnault emphasized that LVMH managed to maintain its cost structure and plans to focus on producing quality goods and sustaining positive cash flow in 2026.

The luxury group’s financial results also raised investor and media interest in Arnault’s succession, reflecting concerns about the future leadership of the company. Arnault’s critique echoes his previous denunciations of French tax policies, which he described as fostering deindustrialization. He further lamented that some planned reductions in corporate taxes were blocked due to pressure from left-wing political groups.

This critique highlights ongoing tensions between French business leaders and government fiscal policies, with LVMH's results symbolizing the economic impact of these measures on major French companies.