LVMH family succession drama heats up
Antoine Arnault is stepping down as chief executive officer of Berluti, the shoemaker that’s part of LVMH Moet Hennessy Louis Vuitton, amid an executive reshuffle that’s set to trigger questions over succession at the world’s biggest luxury group.
The eldest son of billionaire Bernard Arnault will stay on as chairman of the Parisian brand but will be succeeded as CEO by Jean-Marc Mansvelt, who’s transferring from LVMH jewelry brand Chaumet, according to a statement Wednesday. The changes are effective as of Jan. 1.
The announcement will likely renew speculation over succession at the luxury company, which is currently headed by 74-year-old Bernard Arnault, the world’s second-wealthiest person according to the Bloomberg Billionaires index.
Antoine Arnault, who’s been CEO of Berluti since 2011, will also keep his role as chairman at cashmere specialist Loro Piana, as well as oversight responsibilities for image and environment at LVMH. The 46-year old is also vice chairman and CEO of Christian Dior SE, the holding company through which the Arnault family controls LVMH.
Raising Age Limit
Despite the recent maneuvering, there’s no indication that Bernard Arnault is going anywhere anytime soon. LVMH last year lifted the age limit for its chief executive officer, a move that will allow the family patriarch to stay at the helm until he’s 80.
LVMH owns 75 brands but Berluti isn’t in the top 10, according to estimates by HSBC. LVMH doesn’t break down revenue by label. Berluti sales are on track to come in at around €300 million ($327 million) this year, a person familiar with the company said. LVMH declined to comment.
The Parisian maker of footwear once worn by actor Marcello Mastroianni and artist Andy Warhol is known for its €2,090 leather monk shoes as well as custom-made models. Berluti also offers menswear, as well as accessories and suitcases.
Last week, the company announced it will dress the French team for the opening ceremonies of the summer Olympic and Paralympic games in Paris. LVMH will spend €150 million as an official sponsor.
Antoine Arnault’s sister Delphine, 48, the eldest of the five siblings, heads Dior, LVMH’s second-biggest fashion brand after Louis Vuitton. Alexandre Arnault, 31, is in charge of product and communications at Tiffany & Co, while brother Frederic, 29, is chief executive officer of watch brand Tag Heuer. Jean Arnault, 25, is in charge of developing Louis Vuitton’s watch category.
As part of Wednesday’s reshuffle, Mansvelt will be replaced by Charles Leung, the current chief executive officer of LVMH jewelry label Fred. A successor for Leung will be announced in due course, LVMH said.
