Bernard Arnault, the richest man in the world, has named his daughter Dior to lead the fashion business.
In a reorganisation at LVMH, the most valuable firm in Europe, Mr. Arnault elevated Delphine Arnault, 47. It has a portfolio of expensive brands, including Fendi and Louis Vuitton, and is estimated to be worth £336 billion.
Michael Burke, the longtime CEO of Louis Vuitton, will be replaced by the departing Dior CEO, Pietro Beccari.
According to Credit Suisse analyst Natasha Brilliant, they are “natural advancements within the group” because both Ms. Arnault and Mr. Beccari “are well-liked.”
All five of Mr. Arnault’s children have management positions within the group’s brands. The changes, which go into effect in February, follow the recent appointment of Antoine Arnault, the eldest son of Bernard Arnault, as CEO of the family holding company.
Alexandre Arnault, 30, is in charge of goods and communications at Tiffany, and Frederic Arnault, 28, is the chief executive of another group company, Tag Heuer.
The company’s youngest child, Jean Arnault, 24, is head of marketing and product development for Louis Vuitton’s watch division.
Given that “succession planning in crucial jobs has been fundamental to the success of LVMH’s core brands over the preceding 20 years,” Citi analyst Thomas Chauvet said that “today’s actions are notable.”
Celebrities from all over the world attend the Christian Dior runway shows in Paris, drawing ardent crowds of admirers. Examples include K-pop star Jisoo and singer Rihanna.
As executive vice president of LVMH for Louis Vuitton since 2013, Delphine Arnault has been in this position. She won’t continue in this role.
According to reports, Louis Vuitton set new sales records when Ms. Arnault was in charge.
Similar succession plans have recently been developed by several important fashion firms.
The daughter of Inditex’s founder was appointed as the company’s new chairwoman in 2021. Inditex is a significant player in the high-street fashion industry and the owner of brands like Zara and Massimo Dutti. Marta Ortega, who was 37 years old, was there.
Patrizio Bertelli, the CEO of Prada, has declared his intention to hand over the reins of the company to his son Lorenzo within the next two years.