“We see no clouds on the LVMH horizon,” a sanguine Luca Solca, senior research analyst, global luxury goods at Bernstein, opined on Wednesday after leadership changes shook the top of Louis Vuitton and Dior, the French luxury group’s flagship houses.
HSBC analyst Erwan Rambourg, global head of consumer and retail research, lauded Arnault’s “great track record on product at Louis Vuitton” and her history at Dior “so the move seems logical.”
All the changes are effective Feb. 1, and the management shuffle at LVMH could trigger other creative and executive shifts at the vast conglomerate, whose fashion holdings includeFor starters, Beccari will need to fill Delphine Arnault’s position. She was second-in-command to Burke. For example, she orchestrated Vuitton’s mega collaboration with Japanese artist Yayoi Kusama, unfurling throughout the first half of this year and touching all categories of the business.
Her promotion comes less than a month after her eldest brother Antoine Arnault was appointed CEO of holding company Christian Dior SE, which controls LVMH, and vice chairman of its board. That move further locked in family control over the luxury empire, with Antoine Arnault taking on the new title in addition to his roles as CEO of Berluti, chairman of Loro Piana and head of communication, image and environment at LVMH.
“We view these management changes as positive for both the Louis Vuitton and Dior brands, and they underline the bench strength and long-term custodian approach at LVMH which we see as one of the group’s core competitive advantages,” RBC Europe said in a research note Wednesday morning. “It also reflects ongoing leadership transition within the Arnault family.
A man of action, and bold projects, Beccari’s crowning achievement at Dior was the overhaul of its historic Avenue Montaigne boutique, vastly expanded and transformed into a brand temple like no other, spanning a restaurant, pastry café, leafy atriums, a private apartment for VIP clients that gives them the full run of the place, and La Galerie de Dior, the biggest permanent exhibition space dedicated to fashion in the hands of a private house.
“His leadership has accelerated the appeal and success of this iconic maison. Monsieur Dior’s values of elegance and his innovative spirit have been given fresh intensity, supported by very talented designers. The reinvention of the historical boutique at 30 Montaigne is emblematic of this momentum. I am sure Pietro will lead Louis Vuitton to the next level of success and desirability.”
He masterminded a collaboration between Vuitton and Supreme in 2017 that ignited the luxury streetwear trend, overhauled Vuitton’s store network by treating each unit as a bespoke project, and plunged the brand into perfume as an in-house project with a dedicated nose and flower domain. While most management changes occur when businesses falter or stall, LVMH titan Bernard Arnault dares to shake things up when the going is good, with both LVMH and Dior logging strong growth in recent years.
Bernard Arnault also noted that Burke oversaw “the successful integration of Tiffany within the LVMH Group. I am delighted that Michael will continue, by my side, to share his experience and talent for the benefit of our companies.” A charismatic, cerebral and well-rounded executive with a fun-loving streak, Burke is renowned for his impeccable instincts, ability to motivate teams, get the best out of creative types, and manage complexity. He was presented with the WWD Honor for Creative Leadership last year.
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