Monitoring Desk
ISLAMABAD/PARIS: French business magnate, investor and art collector Bernard Arnault has generated succession rumours after he assigned his daughter Delphine to run LVMH’s second-biggest brand, Dior.
Succession rumours
The 73-year-old billionaire’s appointment comes a month after the family’s eldest son, Antoine Arnault was given a more significant responsibility within the company, who replaced Sidney Toledano as the chief executive officer (CEO) and vice chairman of Christian Dior SE, the holding firm through which the billionaire family controls LVMH Moet Hennessy Louis Vuitton SE.
The world’s richest man’s steps to give his offspring more authority have raised concerns about the succession at Europe’s most valuable firm.
There is no indication that Arnault will soon step aside. The age restriction for LVMH’s CEO was raised last year, allowing the family’s patriarch to continue leading the company until he is 80.
According to Luca Solca, an analyst at Sanford C Bernstein, Delphine will receive “more of a front-line exposure at Dior due to this promotion. In Paris trade, LVMH shares increased by 2.2% to a record high, valuing the luxury group at over €388 billion ($417 billion).
For the past 10 years, Delphine, the 47-year-old executive vice president of Louis Vuitton and the eldest of Arnault’s five children, has been in charge of all operations of the brand’s products. She will collaborate closely with Charles Delapalme, the brand’s new managing director, in her new position at Dior.
LVMH also employs Bernard Arnault’s younger sons from his second marriage. For the past two years, Alexandre has been in charge of Tiffany’s goods and communications, Frederic leads French watchmaker Tag Heuer, and Jean is developing Louis Vuitton’s watch division.
On Wednesday, Arnault also elevated Pietro Beccari, CEO of Dior, to lead Louis Vuitton, the company’s flagship brand, which Michael Burke, a devoted subordinate, now heads. Burke will continue to report to Arnault and get new duties.
Arnault’s net worth
The Bloomberg Billionaires Index estimates Arnault’s net worth at $177.7 billion. He overtook Elon Musk, whose fortune has declined, at the top of the list for the first time in December and has been there ever since. The transition occurs when both Louis Vuitton and Dior are booming.
Although LVMH does not break down financial data by brand, Dior led the rise of the fashion and leather goods unit in the third quarter. Along with other fashion brands, this sector is home to Louis Vuitton, Fendi, Celine, and more.
After more than two years of refurbishment, Beccari oversaw the reopening of 30 Montaigne, the Dior flagship store in Paris, in March. The store had more than 500,000 visits by October.
Stéphane Bianchi, chairman and CEO of the watches and jewellery sector, will now also be in charge of Tiffany and Repossi as part of the organizational restructuring.
