The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Luxury goods group LVMH and its founding Arnault family will not benefit from tax deductions on their combined €200 million ($225.02 million) donation towards the restoration of Paris' fire-stricken Notre-Dame cathedral, chief executive Bernard Arnault said on Thursday.
The outpouring of funds following the fire on Monday has prompted questions from charities, politicians and commentators about why some of the business donors have offered so much so quickly, including speculation regarding tax break benefits.
Arnault, France's richest man, told LVMH's shareholder meeting that his family holding company was not eligible for such deductions. He added that the luxury goods company had hit its ceiling to qualify for tax breaks after those it received in recent years for building the Louis Vuitton Foundation.
Arnault also hit out at the criticism in France over his donations.
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"There's some pettiness and jealousy in the air, instead of people thinking about the general interest," Arnault said, urging shareholders to take to social media to show their consternation if they were happy with the donation.
"In many other countries, we'd be congratulated," he said.
The designer has always been an arch perfectionist, a quality that has been central to his success but which clashes with the demands on creative directors today, writes Imran Amed.
This week, Prada and Miu Miu reported strong sales as LVMH slowed and Kering retreated sharply. In fashion’s so-called “quiet luxury” moment, consumers may care less about whether products have logos and more about what those logos stand for.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.