Alexandre Arnault is taking a key role at LVMH‘s $6 billion wine and spirits business just as U.S. President Donald Trump risks unleashing a trade war, complicating a turnaround effort that could decide the 32-year-old’s future in his father’s empire.
The alcohol division, whose brands include Moët & Chandon champagne and Hennessy cognac, has seen its revenues fall for two straight years and its operating profit plunge by over a third in 2024.
Its challenges are only likely to get tougher if Trump’s newly-imposed tariffs on China add to an economic slowdown there, and if he follows through on threatened levies on Europe.
Alexandre Arnault, one of LVMH CEO Bernard Arnault‘s five children vying for more responsibility in their father’s empire, told Reuters he needed a few months to draw up a plan.
“Give us 100 days to wrap our heads around it and understand the business … because it’s a business that will need a lot of restructuring,” he said on the sidelines of the group’s annual results last week.
The United States is the wine and spirit unit’s largest market by sales, with just over a third of its high-end cognac and champagne sold there. Accounting for less than 10% of LVMH group sales, the unit is vulnerable to trade tensions.
Trade data shows LVMH’s cognac business increased deliveries to the U.S. in December as distributors built up inventories. France’s luxury groups were hit in Trump’s first presidential term when he targeted champagne and handbags over a French digital services tax he decided would harm U.S. firms.
“Whilst we continue to believe that the U.S. spirits market will recover further, tariffs bring short-term uncertainty,” Barclays wrote in a note on Tuesday.
Bernard Arnault and members of his family have cultivated personal ties with Trump. Bernard, his wife Helene Mercier, Alexandre, and daughter Delphine, who runs Dior, sat right behind America’s former presidents at Trump’s inauguration. Praising a “wind of optimism” in the United States, Bernard Arnault said last week that LVMH was looking at raising production capacity there.
Alexandre took over as deputy CEO of the alcohol unit on Monday, alongside long-time LVMH finance chief Jean-Jacques Guiony, an industry veteran. Alexandre marked the change on his Instagram account with a post showing he was heading to one of LVMH’s grand cru estates in Burgundy.
Shedding parts of the struggling business was “not on the agenda”, Bernard Arnault said last week in response to recent speculation LVMH could revisit its ties to Diageo, which holds a minority stake in the drinks division. He said he would keep a close eye on the next moves from his son and Guiony.
“I’m sure they’ll get everything back on the growth track. Let’s give them two years to show what they can do,” Bernard Arnault, 75, said.
Alexandre is expected to draw on his experience from previous executive roles at German suitcase maker Rimowa and U.S. jeweller Tiffany & Co, where his missions were to revive somewhat ageing brands, freshly acquired by LVMH.
At Tiffany, he grabbed headlines with a buzzy ad campaign featuring Beyonce and Jay-Z while shaking up the nearly 200-year-old brand’s image with a controversial new slogan: “Not Your Mother’s Tiffany”. The brand’s end-of-year performance showed some signs of improvement, analysts said.
LVMH has struggled to find growth in its high-end wine and spirits after several years of high inflation in Western economies and as younger drinkers shift to mixed and non-alcoholic drinks.
“It’s a business with less growth expectations than other parts of the company, the difficulties are here to stay”, Barclays analyst Carole Madjo told Reuters.
Fashion e-tailer In The Style has unveiled its first 2025 collaboration collection with BBC Strictly Come Dancing 2024 show winner, Dianne Buswell. The new collection has just dropped featuring looks based around a week in Buswell’s life as a professional dancer.
The concept includes matching active and comfort looks, with the brand’s best-selling sculpt and control leggings and unitards featuring alongside its split-hem leggings and flares. Also, the brand’s power mesh technology, used in its ‘sculpt and control’ collection, has been extended to include the unitards for the new release, its noted.
“Staying true to her own life and schedule”, the collection also reflects 99% of her wardrobe in a mix of active and athleisure, Buswell said: “It’s great to be able to put together an authentic collection that is full of pieces that are practical, stylish and comfortable to complement a busy and active lifestyle.”
Phoebe Russell, marketing director of In the Style, added: “We are best known for our celebrity and influencer-based collaborations, and this one to kick off 2025 is one to be excited about. When deciding on our collections, we want to lean into people who wear these wardrobe staples day in and day out, and when it comes to activewear, we really knew Dianne would be such an asset.”
French womenswear label Grace & Mila is thriving at independent retailers and department stores, while the domestic ready-to-wear market remains weak. The label was founded in 2011 by the family trio of Julie, Patricia and Patrick Chou. It’s positioned in the mid-market segment, and has changed its business model from immediately available collections to a classic commercial calendar in order to attract more retailers, especially outside France. Its international sales have grown from 7% of its revenue five years ago to 40% today.
Grace & Mila is currently distributed via nearly 2,000 retailers in 39 countries (including 600 stores in France). A few years ago, it began to attract retailers outside France, in Belgium and Spain, before gradually expanding elsewhere in Europe, notably in Scandinavia and Eastern Europe. The label recently exhibited at the CIFF trade show in Copenhagen, and has opened a shop-in-shop at the Sokos department store in Finland.
North America came next, and Grace & Mila now operates seven showrooms in the USA and Canada. The label is also present in various airport duty-free shops, after partnering with Lagardère Travel Retail. Asia is also on the map: Grace & Mila has a growing presence in Taiwan, Hong Kong, Japan and Thailand, and is mulling entering China, a huge market where the label has offices from where it supervises its collections’ production. In Africa, Grace & Mila recently set foot in Morocco, where it has inked a partnership deal to open a series of retail corners.
“By switching a year ago from immediately available products sold through the wholesale channel to a pre-collection model, with retailers placing their orders ahead of the season, the label has a collection rhythm and a product range that are better suited to the retail channel, enabling us to reach new clients. Also, we’ve been told in many countries that our French touch is reflected in the assortment, and is very much appreciated, after so many seasons of Scandinavian minimalism, of which some are rather weary,” said Julie Gedeon, head of domestic and international sales at Grace & Mila. In addition to trade shows, the label is relying on social media and influencer marketing to expand abroad. “We’ve signed up a retailer in Norway who spotted us on Instagram,” she added.
Grace & Mila’s strength is “value for money. The products are extremely affordable (tops at €49, dresses at €89), but we make an effort with the fabrics, which are 70% natural,” said Gedeon. The new business model has enabled Grace & Mila to broaden its range of sizes (from XS to XL rather than from S to L), and to introduce new, more sophisticated items with slightly higher prices, “without touching entry-level items.”
Thanks to its new clients and partners, the label recorded a 70% revenue rise with the winter collection, and a 30% one with summer 2025, producing an “exceptional” 50% increase in annual revenue, whose value it didn’t disclose. “Our goal for 2025 is to open our first monobrand store abroad,” said Gedeon without revealing the destination, but adding that “for sure, a first opening will then lead to others.”
In France, where the wholesale market is rather flat, the label has two objectives: Firstly, to convince retailers to open Grace & Mila corners in their shops, and secondly to consider converting into a monobrand store. “When we have room to showcase our brand image and our visuals, sales are twice as high,” said Gedeon. Retail-wise, the goal is to gradually expand the label’s monobrand fleet in France, currently comprising five addresses, including a store opened in Bayonne in 2024. “We’re already present in Paris and Lyon, and we’re targeting other cities such as Toulouse and Marseilles,” said Gedeon, adding that the label is continuing to expand in department stores too, having entered the BHV Marais last year.
Grace & Mila’s growth is going hand in hand with new hires at headquarters, in marketing, sales, and the design office. The current premises in the town of Pantin have become too small, and the label will soon move its staff of about one hundred to new offices in Paris.
In 2025, Grace & Mila is also planning to improve its brand platform and boost online sales (worth approximately 10% of revenue), with Gedeon forecasting a 30% sales growth in 2025. Indeed, there is no crisis for Grace & Mila.
In 2025, French luxury leather goods brand Camille Fournet is celebrating its 80th anniversary. The brand was founded in 1945 by Camille Fournet, a craftsman based in the Aisne region of France. Over the years, the company has broadened its business, notably with leather goods.
In the 1960s, Camille Fournet began to create leather watch straps for French and Swiss watch makers. Tapping this expertise, and producing at a factory that was opened in the 1970s in Tergnier, France, the brand launched the first Camille Fournet watch straps in 2006, then introduced a range of leather goods in 2020, notably belts and handbags. The Camille Fournet brand now accounts for 25% of the company’s €40 million revenue.
To continue to grow, the brand, which opened a store on rue Cambon in Paris in 2006, and has two stores in Japan in addition to various department store concessions, is keen to boost its export retail business.
“Japan has always been our main market in terms of in-store sales, but the USA is now number one in terms of e-commerce sales. There is a strong appetite for French leather goods [in the US],” said Jean-Yves Basin, CEO of Camille Fournet.
Its unisex leather products retail on average at prices between €1,500 and €1,700. The brand will be available in New York in March via a space in “a French department store,” said Basin. Camille Fournet’s retail expansion drive will then focus on opening shop-in-shops in India and the Middle East: at Galeries Lafayette in Mumbai this summer, and in Dubai in the autumn.
Camille Fournet was bought in 1994 by its current president and majority shareholder Jean-Luc Déchery, while new minority shareholders bought stakes last year. The company is also strengthening its third-party production business for luxury labels.
A year ago, it invested €7 million in a new facility at its Tergnier production site, with the goal of increasing its handbag manufacturing capacity for French luxury labels.