LVMH’s CEO Bernard Arnault plans to open a second factory in Texas as the luxury group anticipates a positive outcome from U.S.-Europe trade talks. The company reported lower-than-expected sales, with the fashion and leather division struggling. Arnault has lobbied EU leaders to ease tensions with the U.S. Finance Chief Cecile Cabanis is confident in trade talks and believes a 15% tariff rate would benefit clients. Sales for the second quarter were down 4% to 19.5 billion euros, with the fashion division seeing a 9% decrease. In China, there’s hope with improved luxury goods sales.

LVMH’s legacy brands face competition from more affordable brands, and worker abuse allegations have surfaced. CEO Arnault is focusing on stability and long-standing managers. He has hinted at expanding the group’s U.S. presence following Trump’s re-election. Arnault’s son mentioned his father’s diplomatic role at the Viva Tech trade fair. ($1 = 0.8498 euros)

Read more at Yahoo Finance: LVMH’s Arnault plans new Texas factory, as company awaits US-EU trade deal