Bernard Arnault named his daughter Delphine to run LVMH’s second-biggest brand, Dior, the latest step by the 73-year-old billionaire to elevate his children to key posts in his luxury empire.
The appointment comes a month after Antoine Arnault, the eldest son, was given a wider role in the business, replacing Sidney Toledano as chief executive and vice-chairman of Christian Dior, the holding company through which the family controls LVMH Moet Hennessy Louis Vuitton.
The moves by the world’s richest man to give his children greater responsibilities have raised questions about succession at Europe’s most valuable company, though there’s no sign Arnault plans to step back anytime soon. Last year, LVMH lifted the age limit of its CEO, allowing the family patriarch to stay at the helm until he is 80.
The promotion will give Delphine “more of a front-line exposure at Dior,” said Luca Solca, an analyst at Sanford C Bernstein.
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Shares of LVMH rose as much as 2.2 per cent to a record in Paris trading, valuing the luxury conglomerate at about €388 billion.
Delphine, 47 and the eldest of Arnault’s five children, has been executive vice-president of Louis Vuitton for the past decade, in charge of supervising all of the brand’s product-related activities. In her new role at Dior, she will work closely with Charles Delapalme, who now becomes managing director at the brand.
Arnault is worth an estimated $177.7 billion, according to the Bloomberg Billionaires Index
The younger sons from Bernard Arnault’s second marriage are also involved at LVMH. Alexandre has been in charge of products and communications at Tiffany for two years. Frederic runs Swiss watchmaker Tag Heuer, while Jean is working to develop the watch category at Louis Vuitton.
Arnault on Wednesday also promoted Dior CEO Pietro Beccari to run Louis Vuitton, LVMH’s biggest brand, which is currently run by Michael Burke, a loyal lieutenant. Burke will keep reporting to Arnault and get new responsibilities, according to a statement on Wednesday.
Arnault is worth an estimated $177.7 billion, according to the Bloomberg Billionaires Index. He topped the list for the first time in December and has remained ensconced in that position ever since after surpassing Elon Musk, whose fortune has dwindled.
The reshuffle comes at a moment when both Dior and Louis Vuitton are thriving. While LVMH doesn’t break down financial numbers by brand, the fashion and leather goods unit’s growth had been led by Dior in the third quarter. This division also houses Louis Vuitton as well as Fendi, Celine and other fashion labels.
Last March, Beccari oversaw the reopening of 30 Montaigne, Dior’s flagship store in Paris, after more than two years of renovation. By October, the boutique had drawn more than half a million visitors.
As part of the management shuffle, Stephane Bianchi, chairman and CEO of the watches & jewellery division, will now also oversee Tiffany and Repossi. – Bloomberg
