New CEO at Louis Vuitton

New CEO at Louis Vuitton

Budrigannews.com – Bernard Arnault, Chairman and CEO of LVMH, has reorganized top management at his luxury goods empire, appointing his daughter Delphine to lead Christian Dior and naming a new boss for Louis Vuitton to tighten his family’s hold.

Pietro Beccari, who has been the head of Dior beginning around 2018, is moving to supplant long-term Louis Vuitton Chief Michael Burke, 65.

“Both have a lot of respect; logical promotions within the group,” Natasha Brilliant, an analyst at Credit Suisse, stated.

With a market capitalization of approximately 408 billion euros, LVMH is the most valuable company in Europe. Its stock rose as much as 2% to new highs. The recent relaxation of COVID-19 restrictions in China, a crucial market, has helped luxury companies’ stock prices.

Delphine Arnault, 47, previously worked for Dior for a dozen years before joining Burke as a coworker at Louis Vuitton.

The company said in a statement that Burke, who has been Bernard Arnault’s longest-serving lieutenant and has also been chairman of jewelry brand Tiffany, will continue to collaborate with the senior Arnault. The statement did not specify Burke’s new position.

One of the most influential executives in the fashion industry, Burke oversaw explosive growth at Louis Vuitton, the largest luxury brand in the world. He was instrumental, for instance, in bringing street fashions into the realm of luxury in recent years.

According to Citi estimates, Beccari, who previously led the LVMH-owned label Fendi, tripled Christian Dior’s sales to 6.6 billion euros during his tenure. The breakdown of LVMH’s brands’ annual sales is not provided.

By opening temporary retail outlets in resort areas like Mykonos, Greece, and Santa Barbara, California, Beccari expanded the label’s product line to include beach accessories like surfboards and hammocks.

The executive oversaw a major renovation of the label’s historic address on Avenue Montaigne in Paris, transforming it into a massive flagship with restaurants and a museum to reestablish foot traffic in the area.

The Dior catwalk shows in Paris, where international stars like K-pop singer Jisoo and Rihanna attend, draw crowds of screaming fans. Last month, the brand lit up social media with a show in Egypt by menswear designer Kim Jones with the pyramids as a backdrop.

Bernard Arnault and his children are frequently seen in the front row.

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

Following the recent appointment of Antoine Arnault, Bernard Arnault’s eldest son, to lead the family’s holding company, the announced changes will take effect in February.

In addition, the family’s tightening grip on its empire comes amid a flurry of high-profile successions at other European fashion companies, including Prada (OTC:). and Inditex, which owns Zara (BME:).

The company raised the maximum age of its CEO from 75 to 80 last year, and Bernard Arnault, who is 73 years old, has not indicated that he intends to step down soon.

All of his children are in management positions at the group’s brands. Senior executives carefully train them as they rise through the ranks.

As the head of the group’s fashion prize for upcoming designers, Delpine Arnault has been most involved in fashion.

The 45-year-old Delphine and Antoine are the offspring of their father’s first marriage.

Frederic Arnault, 28, is the CEO of another group brand, TAG Heuer. Alexandre Arnault, 30, is in charge of Tiffany’s products and communication. The youngest member of the family, Jean Arnault, 24, is in charge of Louis Vuitton’s watches division’s marketing and product development.

The company is also integrating Tiffany into the watches and jewelry division, which is managed by Stephane Bianchi, as part of the management changes.

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