LVMH names new Louis Vuitton CEO, puts Arnault daughter in charge of Dior
Delphine Arnault to become CEO of Christian DiorPietro Beccari to replace Michael Burke at Louis VuittonBurke to continue working with Arnault
PARIS, Jan 11 (Reuters) – LVMH Chairman and CEO Bernard Arnault has reshuffled senior management at his luxury goods empire, tightening his family’s control with the appointment of his daughter Delphine to head Christian Dior and the appointment of a new boss. for Louis Vuitton.
Pietro Beccari, who has been head of Dior since 2018, is moving to replace longtime Louis Vuitton CEO Michael Burke, 65.
“Both are well respected; logical promotions within the group,” said Credit Suisse analyst Natasha Brilliant.
Shares of 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 the Tiffany jewelry brand, will continue to work alongside the elder Arnault, the company said in a statement, without detailing his new role.
One of the fashion industry’s most influential executives, Burke oversaw the soaring growth of Louis Vuitton, the world’s largest luxury label, playing a key role for example in elevating street style into the luxury realm in recent years.
Beccari, meanwhile, who also previously headed LVMH-owned Fendi, increased sales at Christian Dior threefold to 6.6 billion euros during his tenure, according to estimates from Citi. LVMH does not provide a breakdown of the annual sales of its brands.
RESORT SHOPS, STAR STUDDED FASHION SHOWS
Beccari pushed the label into new products, including beach accessories like surfboards and hammocks, bringing them closer to customers by setting up temporary retail outlets in tourist locations including Mykonos, Greece and Santa Barbara, California.
The executive led a massive renovation of the label’s historic Avenue Montaigne address in Paris, transforming it into a grand ship of restaurants and a museum, reviving pedestrian traffic in the neighborhood.
Dior’s runway shows in Paris, attended by global stars such as K-pop singer Jisoo and Rihanna, draw crowds of screaming fans, and the brand set social media alight with a show by menswear designer Kim Jones in Egypt last month, with the pyramids serving as a backdrop.
Bernard Arnault is often seen in the front row, surrounded by his children.
“Continuity planning in strategic roles has been instrumental to the success of LVMH’s core brands over the past 20 years, so today’s moves are significant,” said Thomas Chauvet, analyst with Citi.
The announced changes, which take 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 hits at other fashion companies in Europe, including Prada ( 1913.F ) and Zara owner Inditex.
Bernard Arnault, 73, has shown no sign of planning to step down anytime soon, and the company last year raised its CEO’s maximum age to 80 from 75.
All of his children hold leadership positions in the group’s brands, carefully groomed by senior executives as they rise through the ranks.
Of the five, Delpine Arnault has been the most involved in fashion, as head of the group’s fashion award for up-and-coming designers.
Delphine and Antoine, 45, are children from their father’s first marriage.
Alexandre Arnault, 30, is responsible for 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 watch division.
As part of the management changes, the company is also folding Tiffany into the watches and jewelry division, under the management of Stephane Bianchi.
LVMH shares the shine
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Reporting by Sudip Kar-Gupta and Mimosa Spencer; editing by Mark Potter and Jason Neely
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