: Daughter of world’s richest man takes the helm at Dior as LVMH reshuffles its two biggest fashion houses

by | Jan 11, 2023 | Stock Market

The biggest luxury brand in the world has announced a shake-up of its two major fashion labels, a move that has put the daughter of the world’s richest man in charge at one of them. LVMH Moët Hennessy Louis Vuitton
LVMH,
+1.61%
said Wednesday that Pietro Beccari, head at Christian Dior Couture up to now, will take on the roles of chief executive and chairman at Louis Vuitton. Stepping into his shoes at Dior will be Delphine Arnault, daughter of group CEO and controlling shareholder Bernard Arnault. The oldest of Arnault’s five children, she previously held the role of director and executive vice president of Louis Vuitton.

Shares of LVMH rose 1.7% to €769.10 in early European trading. “Succession planning in strategic roles has been instrumental to the success of LVMH’s key brands over the past 20 years, hence today’s management changes are significant, we think,” said Citi analysts Thomas Chauvet and Lorenzo Bracco, in a note to clients. They noted how the senior Arnault has been increasing the family grip on LVMH — such as last year transforming family holding group Financiere Agache into a limited partnership. “This company structure is not widely used in France other than at Hermès and Michelin, with one aspect being tighter control over the company. More recently Antoine Arnault (45), Arnault’s second child and currently CEO of Berluti and Chairman of Loro Piana, has also become CEO of Dior SE, the holding company controlling LVMH (itself controlled by Financiere Agache),” said the Citi analysts, …

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