LVMH appointed a new CEO of Louis Vuitton and Arnault put his daughter in charge of Dior


  • Delphine Arnault will become CEO of Christian Dior
  • Pietro Beccari to replace Michael Burke at Louis Vuitton
  • Burke will continue to work with Arnault

PARIS, Jan 11 (Reuters) – LVMH ( LVMH.PA ) Chairman and Chief Executive Bernard Arnault has reshuffled top management at the luxury goods empire, strengthening his family’s control and appointing a new boss as his daughter Delphine heads Christian Dior. For Louis Vuitton.

Pietro Beccari, who has been head of Dior since 2018, will replace Michael Burke, 65, the longtime CEO of Louis Vuitton.

“Both are highly respected; logical promotions within the group,” said Credit Suisse analyst Natasha Brilliant.

Shares in LVMH, Europe’s most valuable company worth about 380 billion euros ($408 billion), rose as much as 2% to new highs. Shares of luxury companies have recently been boosted by the easing of COVID-19 restrictions in key market China.

Delphine Arnault, 47, has worked alongside Burke at Louis Vuitton for the past decade and previously spent a dozen years at Dior.

Burke, Bernard Arnault’s longest-serving lieutenant and also chairman of jewelry brand Tiffany, will continue to work alongside Arnault, the company said, without giving details of his new role.

One of the fashion industry’s most influential executives, Burke has overseen the rapid growth of Louis Vuitton, the world’s largest luxury brand, and has played a key role in elevating street style into the luxury realm in recent years, for example.

Beccari, who previously headed the LVMH-owned Fendi label, tripled sales at Christian Dior to 6.6 billion euros during his tenure, according to Citi estimates. LVMH does not provide a breakdown of the annual sales of its brands.

RESORT SHOPS, STAR FASHION

Beccari pushed the label into new products, including beach accessories such as surfboards and hammocks, and brought them closer to customers by setting up temporary retail outlets in resort locations including Mykonos, Greece and Santa Barbara, California.

The executive led a massive redevelopment of the label’s historic Avenue Montaigne address in Paris, turning it into a major flagship with restaurants and a museum and revitalizing the neighborhood’s pedestrian traffic.

Dior catwalk presentations in Paris, attended by global stars such as K-pop singer Jisoo and Rihanna, attracted screaming fans, and the brand lit up social media last month with menswear designer Kim Jones’ show in Egypt. pyramids serving as background.

Bernard Arnault is often seen in the front row with his children.

“Succession planning in strategic roles has been instrumental in the success of LVMH’s core brands over the past 20 years, so today’s steps are significant,” said Citi analyst Thomas Chauvet.

SUCCESSION PLANS

The announced changes, which took effect in February, follow the recent appointment of Bernard Arnault’s eldest son, Antoine Arnault, as head of the family’s holding company.

The family’s consolidation of its empire also comes amid a wave of high-profile successions at other European fashion companies, including Prada ( 1913.F ) and Zara owner Inditex.

Bernard Arnault, 73, shows no signs of planning to step down anytime soon, and the company last year raised the maximum age for CEOs from 75 to 80.

All of his children hold executive positions at brands in the group, scrutinized by top executives for their senior ranks.

Of the five, Delpine Arnault has been most involved in fashion, as head of the group’s fashion prize for up-and-coming designers.

Delphine and Antoine, 45, are children from their father’s first marriage.

Alexandre Arnault, 30, is in charge of products and communications at Tiffany, while Frédéric Arnault, 28, is CEO of another group brand, TAG Heuer. The youngest child, Jean Arnault, 24, works in marketing and product development at Louis Vuitton’s watch division.

As part of the management changes, the company is bringing Tiffany into its watches and jewelry division under Stephane Bianchi.

LVMH shares sparkled

($1 = 0.9308 euros)

Reporting by Sudip Kar-Gupta and Mimosa Spencer; Edited by Mark Potter and Jason Neely

Our standards: Thomson Reuters Trust Principles.



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