A lawsuit filed by Nicolas Puech, a fifth‑generation descendant of Hermès designer Thierry Hermès, has been lodged in the French courts against LVMH Moët Hennessy Louis Vuitton SE and its CEO Bernard Arnault.

  • Claim: Puech alleges that LVMH and Arnault benefitted from the sale of Hermès shares amounting to €16 billion without his consent.
  • Damages: The claim seeks €14 billion in compensation, a figure reported by multiple outlets including Eleconomista, FashionUnited and Manager Magazin.
  • Context: The suit centers on alleged “lost” shares and unauthorized transactions, a dispute that has attracted significant media attention.

Internal Management Changes

On 5 December, LVMH announced the resignation of Matteo De Rosa from his position as CEO of Métiers d’Art, the division responsible for the group’s luxury craft and strategic supply‑chain activities.

  • De Rosa had led the sector for four years.
  • The announcement came as the group prepares for a transition in leadership structure, although no successor has yet been named.

Labor Unrest at Moët Hennessy

Workers in LVMH’s wines and spirits division, Moët Hennessy, have signaled a series of strikes scheduled to commence on Friday, 5 December.

  • The union CGT claims the action is in response to a reduction in annual bonuses.
  • The plan reflects growing dissatisfaction among staff and may impact production schedules for the upcoming holiday season.

Market Reaction and Outlook

  • Stock Performance: As of 4 December, LVMH’s share price closed at €628.10, well below its 52‑week high of €762.70 but above the low of €436.55.
  • Valuation: The company’s price‑earnings ratio stands at 28.19, suggesting a premium valuation relative to the broader luxury sector.
  • Industry Context: Analysts anticipate a potential rebound in Chinese demand next year, which could lift luxury sales. However, the sector remains cautious amid current legal and labor challenges.

Summary

LVMH is navigating a complex landscape: a high‑profile lawsuit alleging unauthorized share sales, a key executive stepping down, and imminent strike actions in its spirits division. While the company’s financial fundamentals remain robust, these developments may influence investor sentiment and operational continuity in the near term.