LVMH names new Louis Vuitton CEO, puts Arnault daughter in charge of
Dior
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[January 11, 2023] By
Mimosa Spencer
PARIS (Reuters) - LVMH Chairman and CEO Bernard Arnault has reshuffled
top management at his luxury goods empire, tightening his family's grip
with the appointment of his daughter Delphine to lead Christian Dior,
and naming a new boss for Louis Vuitton.
Pietro Beccari, who has been the head of Dior since 2018, is moving to
replace long-time Louis Vuitton CEO Michael Burke, 65.
"Both are well respected; logical promotions within the group," said
Credit Suisse analyst Natasha Brilliant.
Shares in LVMH, Europe's most valuable company at about 380 billion
euros ($408 billion), rose as much as 2% to hit new highs. Shares in
luxury companies have been boosted recently by the easing of COVID-19
restrictions in China, a key market.
Delphine Arnault, 47, has worked at Louis Vuitton for the past decade
alongside Burke and previously spent a dozen years at Dior.
Burke, who is Bernard Arnault's longest-serving lieutenant and has also
been chairman of jewellery arm Tiffany, will continue to work alongside
the Arnault senior, the company said in a statement, without detailing
his new role.
One of the fashion industry's most influential executives, Burke oversaw
soaring growth at Louis Vuitton, the world's largest luxury label,
playing a key role for example in elevating street styles to the realm
of luxury in recent years.
Beccari, meanwhile, who also previously led LVMH-owned label Fendi,
increased sales at Christian Dior three-fold to 6.6 billion euros during
his tenure, according to estimates from Citi. LVMH does not provide a
breakdown of annual sales of its brands.
RESORT STORES, STAR-STUDDED FASHION SHOWS
Beccari pushed the label into new products, including beach accessories
such as surfboards and hammocks, bringing them closer to clients by
setting up temporary retail outlets in resort locations including
Mykonos, Greece, and Santa Barbara, California.
The executive steered a massive overhaul of the label's historic Avenue
Montaigne address in Paris, transforming it into a hulking flagship with
restaurants and a museum, reviving foot traffic in the neighbourhood.
The label's fashion shows in Paris, which are attended by global stars
such as K-pop singer Jisoo and Rihanna, draw crowds of screaming fans,
and the brand lit up social networks with a show from menswear designer
Kim Jones in Egypt last month, with the pyramids serving as a backdrop.
[to top of second column] |
Items lie on display at a gingerbread
themed gift shop as part of ‘The Fabulous World of Dior’
installation at the Harrods store in London, Britain, November 10,
2022. REUTERS/Henry Nicholls/Files
Bernard Arnault is often spotted in the front row, flanked by his
children.
"Succession planning in strategic roles has been instrumental to the
success of LVMH's key brands over the past 20 years, hence today's
moves are significant," said Thomas Chauvet, analyst with Citi.
SUCCESSION PLANS
The announced changes, which come into effect in February, follow
the recent appointment of Antoine Arnault, Bernard Arnault's eldest
son, to head the family's holding company.
The tightening of the family's hold on its empire also comes amid a
wave of high-profile successions in other fashion companies in
Europe.
Bernard Arnault, 73, has shown no signs he plans to step down soon
and the company last year raised the maximum age of its CEO to 80
from 75.
All of his children hold management positions at brands in the
group, carefully groomed by senior executives as they move up the
ranks.
Of the five, Delpine Arnault has been most involved in fashion, as
head of the group's fashion prize for upcoming designers.
Delphine and Antoine, 45, are children from their father's first
marriage.
Alexandre Arnault, 30, is in charge of products and communication at
Tiffany, while Frederic Arnault, 28, is CEO of another group brand,
TAG Heuer. The youngest child, Jean Arnault, 24, heads marketing and
product development for Louis Vuitton's watches division.
As part of the management changes, the company is also folding
Tiffany into the watches and jewellery division, under management of
Stephane Bianchi.
($1 = 0.9308 euros)
(Reporting by Sudip Kar-Gupta and Mimosa Spencer; editing by Mark
Potter and Jason Neely)
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