The luxury French group LVMH announced on Wednesday a reorganization of its management leadership: it appointed a new CEO of its flagship brand Louis Vuitton and designated the billionaire’s daughter bernard arnault in front of Christian Dior Couture.
The shakeup of LVMH’s two major fashion houses comes at a time when the Arnault family’s fortunes have soared to new heights, surpassing Tesla and to the head of Twitter, Elon Muskas the world’s top billionaires at the end of last year.
Bernard Arnault has declared that the appointment of his daughter Delphinesenior executive of Louis Vuittonat the helm of Dior is the “continuation of a career of excellence in fashion and leather goods”.
Under his guidance, Louis Vuitton was able to “fly from record to record” and his “keen eye Y unparalleled experience They will be decisive assets in the continued development of Christian Dior,” Arnault said in a statement.
will happen to Pietro Beccariwhich will replace michael burke in front of Louis Vuittonthe world’s top luxury brand in terms of sales and famous for its bags emblazoned with the initials “LV”.
Bernard Arnault praised Beccari for his “exceptional job” at the helm of Dior for the last five years.
“No one doubts that it will lead Louis Vuitton to even greater desirability and success,” he declared.
Arnault also congratulated Burke on his “great job” during 10 years at the helm of Vuittonwhich contributed to “widen the distance with our competition”.
Burke will assume a new role alongside Bernard Arnault.
Arnaud Cadarta portfolio manager at asset management firm Flornoy, said the appointments of Beccari and Delphine Arnault are “clear signs of confidence” and a “desire to keep a balance between outsiders and members of the Arnault family.”
Beccari, who joined LVMH in 2006, takes over a “strategic house”while Delphine Arnault directs “another jewel of the group”, said Cadart.
Delphine Arnault “has proven herself by doing a great and good job at Vuitton,” he said, calling the signing “important appointment”
Changes in address will be effective on February 1st.
Arnault, 73, and his family surpassed Musk on the lists of Forbes Y Bloomberg of the world’s biggest billionaires at the end of last year, and Forbes placed the clan’s net worth at 200,000 million dollars.
Arnault’s five children hold senior positions at LVMH.
delphine arnault, 47 years old, She has been executive vice president of Louis Vuitton since 2013 and oversees all activities related to the brand’s products. Previously, she was deputy general manager of Christian Dior Couture.
antoine arnault45, was appointed CEO of the holding Christian Dior SEwhich controls LVMH, in December, and also holds other positions within the group.
Alexandre Arnault, 30 years old, is executive vice president of the jewelry brand Tiffanywhile his brother Frederick (28 years) He is the CEO of the watch manufacturer Tag Heuer.
The youngest son, jean arnault24, is director of watch development and marketing at Louis Vuitton.
LVMH has more than 75 brandsincluding the fashion firm Kenzo and the champagne maker Moet & Chandon.
The group made a net profit of €6.5 billion (7,000 million dollars) in the first half of 2022, 23% more than in the same period of the previous year.
The sales increased 28%up to 36,700 million euros.
Full-year 2022 results will be released in the coming weeks but are expected to show growth after generating €64bn in sales in 2021, €20bn more than the previous year.
In a note, analysts at RBC Capital Markets said the makeover was “positive for both the Louis Vuitton and Dior brands” and that it “also reflects the leadership transition ongoing within the Arnault family.”
(With information from AFP)