Paris (AFP) – The global luxury giant LVMH will renew the management of its two biggest brands, Louis Vuitton and Dior, with the appointment of Pietro Beccari at the head of the former, and Delphine Arnault, daughter of Bernard Arnault, at the helm of the latter.
In a rare double announcement of this magnitude, the group said on Wednesday morning that after 10 years as CEO of Louis Vuitton – its flagship brand, the world’s top-selling luxury house – Michael Burke would step down as Pietro Beccari, who has run Christian Dior Couture since 2018 after joining the LVMH galaxy in 2006.
Quoted in the press release, Bernard Arnault, CEO of LVMH, praised “the tremendous work” carried out by Michael Burke, which allowed Louis Vuitton to “increase the gap with its competitors”. Burke will remain at his side in “new roles” that have not been specified.
Delphine Arnault, his 47-year-old daughter, will take over at the helm of Christian Dior, replacing Pietro Beccari. She was until now deputy general manager of Louis Vuitton, responsible for overseeing all product activities since 2013, after having worked at Christian Dior for twelve years.
“Under his direction, product desirability has progressed considerably, allowing the brand (Louis Vuitton) to fly from record to record.
These two appointments – which will take effect on February 1 – are “obvious signs of trust, as well as the desire to respect a balance between external personalities and members of the Arnault family”, commented to AFP Arnaud Cadart, portfolio manager at Flornoy.
“Pietro Beccari takes charge of a strategic house, if any, and Delphine Arnault, of the other nugget of the group: she has proven herself with a great and good job at Vuitton, it is an important appointment”, he estimated.
While the LVMH bond was up 1.19% (765.30 euros) on the Paris Stock Exchange on Wednesday morning around 09:00 GMT, analysts at RBC Capital Markets called these “positive” management changes, which “also reflect the leadership transition under way in the Arnault family”, in a note.
The entrepreneur’s five children already work at the LVMH group: in addition to Delphine, Antoine, the eldest son, was appointed last December as general manager of the Christian Dior SE holding company, which controls the world’s number one luxury brand LVMH, as well as deputy chairman of the board of directors of the holding company. He is also Executive Director of Berluti, President of Loro Piana, Director of Image and Environment of the LVMH group and Director of LVMH.
Alexandre Arnault is, in turn, executive vice-president of Tiffany jewelry. Frédéric is CEO of Tag Heuer and Jean is Director of Marketing and Watch Development at Louis Vuitton.
Patriarch Bernard Arnault, 73, recently became the world’s first richest with his family ahead of Elon Musk, head of Tesla, SpaceX and Twitter, according to the Forbes ranking.
On Wednesday, LVMH also announced that US jeweler Tiffany is joining the group’s watch and jewelery division after completing its acquisition in January 2021.
The world number one luxury results for the year 2022 are due in a few weeks and should improve.
In 2021, the group generated 64 billion euros in revenue, i.e. 20 billion euros more than in 2020. Its Fashion and Leather Goods division – which includes Vuitton, Dior, Céline, Givenchy, Fendi and even Kenzo – contributed more than 30 billion.
LVMH does not report the detailed financial performance of its 75 brands.
© 2023 AFP