© Reuters. Bernard Arnault, CEO of LVMH Moet Hennessy Louis Vuitton SE, and Delphine Arnault, Executive Vice President of Louis Vuitton, leave after the Spring/Summer 2020 collection show for the Louis Vuitton fashion house during Men’s Fashion Week in Paris, France, Ju
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By Mimosa Spencer
PARIS (Reuters) – LVMH Chairman and CEO Bernard Arnault has reshuffled the top management of his luxury goods empire, strengthening his family’s control by naming his daughter Delphine to lead Christian Dior and naming a new boss for Louis Vuitton.
Pietro Beccari, who has been Dior boss since 2018, is moving in to replace Louis Vuitton CEO Michael Burke, 65.
“Both are highly respected; logical promotions within the group,” said Natasha Brilliant, an analyst at Credit Suisse.
Shares of LVMH, Europe’s most valuable company with some 380 billion euros ($408 billion), rose as much as 2% to hit new highs. Shares of luxury companies have recently been boosted 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 deputy and has also been president of jewelry brand Tiffany, will continue to work alongside Arnault’s senior, the company said in a statement, without detailing his new role.
Burke, one of the fashion industry’s most influential executives, oversaw the breakneck growth of Louis Vuitton, the world’s largest luxury brand, playing a key role, for example, in elevating streetwear styles to the realm of fashion. luxury in recent years.
Meanwhile, Beccari, who previously also headed the LVMH-owned Fendi brand, tripled Christian Dior’s sales to 6.6 billion euros during his tenure, according to Citi estimates. LVMH does not provide a breakdown of its brands’ annual sales.
TOURIST SHOPS, FASHION SHOWS FILLED WITH STARS
Beccari introduced the label to new products, including beach accessories like boogie boards and hammocks, bringing them closer to customers by setting up temporary outlets in tourist locations like Mykonos, Greece and Santa Barbara, California.
The executive led 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 neighborhood.
Attended by global stars including K-pop singer Jisoo and Rihanna, Dior’s Paris runway presentations draw crowds of screaming fans, and the brand set social media ablaze with a show from the menswear designer. Kim Jones in Egypt last month, with the pyramids serving as her backdrop.
Bernard Arnault is often seen in the front row, flanked by his sons.
“Succession planning in strategic roles has been critical to the success of LVMH’s key brands for the past 20 years, so today’s moves are significant,” said Thomas Chauvet, an analyst at Citi.
SUCCESSION PLANS
The announced changes, which will take effect in February, follow the recent appointment of Antoine Arnault, Bernard Arnault’s eldest son, to head the family holding company.
The family’s tightening of control over its empire also comes amid a wave of high-profile successions at other fashion companies in Europe, including Prada (OTC:) and the owner of Zara. inditex (BME:).
Bernard Arnault, 73, has shown no sign of planning to resign anytime soon and the company last year raised the maximum age for its chief executive from 75 to 80.
His sons all hold management positions at group brands, carefully groomed by top executives as they rise through the ranks.
Of the five, Delpine Arnault has been the most involved in fashion, as director of the group’s fashion award for future 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 brand in the group, TAG Heuer. The youngest son, Jean Arnault, 24, heads marketing and product development for Louis Vuitton’s watch division.
As part of the management changes, the company will also add Tiffany to the watches and jewelry division, under the leadership of Stephane Bianchi.
GRAPHIC: LVMH shares shine – https://fingfx.thomsonreuters.com/gfx/mkt/dwpkdaarovm/LVMH.PNG
($1 = 0.9308 euros)
