When things are going well, companies often tout their accomplishments and expect the fun to never end.
Not LVMH Moet Hennessy Chairman and Chief Executive Bernard Arnault.
In the company's latest earnings call, Arnault sounded the warnings bells that the good times might be over in the luxury sector.
"Over a 10-year period, normally, there are eight good years and two not so good years or even a very bad year. Now, we're coming to the end of the 10-year period," Arnault said, noting that the last major crisis dates to 2008.
And it's not just a matter of timing, Arnault cited several situations that could change investor and consumer sentiment. Among them, the likelihood that interest rates will rise, the "exuberance" with which stocks are rising and a "geopolitical situation that's difficult to read."
The CEO went on to say that he has conveyed to his teams that they should plan the year with great caution and be "very vigilant."
"Geopolitical economic events ... might unfold in a way that isn't particularly helpful," he said. "We really need to be prudent."
Arnault's comments followed a quarter in which the company's net profit in the second half jumped 14 percent from the year-earlier period, boosted by solid sales across its brands, which include luxury labels Louis Vuitton and Fendi, Bulgari jewelry, and cosmetics retailer Sephora.
The positive earnings news sent LVMH shares to an all-time high on Thursday.
Arnault expects the first half of 2017 to be relatively positive as the company faces lower hurdles than in first half of 2016, but the situation could change quickly in the second half of the year.