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 first, and Delphine Arnault, daughter of Bernard Arnault, at the controls of the second. .
In a rare double announcement of this magnitude, the LVMH group indicated on Wednesday January 11 that after ten years as CEO of Louis Vuitton – its flagship brand, the world’s leading luxury house in terms of sales – Michael Burke would give way to Pietro Beccari, who had been running Christian Dior Couture since 2018 after entering the LVMH galaxy in 2006.
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Quoted in the press release, Bernard Arnault, CEO of LVMH, praised “the tremendous work” carried out by Michael Burke which enabled Louis Vuitton to “widen the gap with its competitors”. Michael Burke will remain at his side in the context of “new functions” which have not been specified.
Delphine Arnault, her 47-year-old daughter, will take charge of the Christian Dior house, 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, the desirability of products has progressed considerably, allowing the brand (Louis Vuitton) to fly from record to record. his father.
These two appointments – which will be effective on February 1 – are “obvious signs of confidence, with also the desire to respect a balance between external personalities and members of the Arnault family”, commented to AFP Arnaud Cadart, manager of portfolios at Flornoy. “Pietro Beccari takes the helm of a strategic house if there is one, and Delphine Arnault that of the other nugget of the group: she has proven herself with a big and good job at Vuitton, it’s a major appointment” , he estimated.
While the LVMH title took 1.56% (768.10 euros) on the Paris Stock Exchange shortly after these announcements, Bernstein analysts described as “very good news” the appointment of Pietro Beccari in order to “open a new chapter of growth” for Louis Vuitton, whose 2022 turnover they estimate at “more than 22 billion euros” – while the luxury group does not detail the financial performance of its brands.
For their part, analysts at RBC Capital Markets considered these managerial changes “positive”, which “also reflect the leadership transition underway within the Arnault family”, also estimating sales of 6.2 billion euros. Dior’s 2021 annuals.
A well-represented family
The five children of the businessman already work in the LVMH group: in addition to Delphine, Antoine, the eldest son, was appointed last December as general manager of the holding company Christian Dior SE, which controls the world number one in luxury LVMH , as well as vice-chairman of the board of directors of the holding company. He is also Managing Director of Berluti, Chairman of Loro Piana, Image and Environment Director of the LVMH group, and Director of LVMH. Alexandre Arnault is for his part executive vice-president of the jeweler Tiffany. Frédéric is CEO of Tag Heuer and Jean is Director of Marketing and Watch Development for Louis Vuitton.
The patriarch Bernard Arnault, 73, recently became with his family the first fortune in the world ahead of Elon Musk, boss of Tesla, SpaceX and Twitter, according to the Forbes ranking. LVMH has also announced that the American jeweler Tiffany is joining the group’s Watches and Jewelry division, after the completion of its takeover in January 2021.
The results of the world number one in luxury for the year 2022 should be unveiled within a few weeks and are expected to improve. In 2021, the group had generated 64 billion euros in turnover, 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 – had contributed more than 30 billion.