Arnault Son Climbs LVMH's Top Ranks in Further Leadership Reshuffle -- Update

Dow Jones11-14

By Dominic Chopping

LVMH said it is elevating Alexandre Arnault, a son of Chairman and Chief Executive Bernard Arnault, to deputy CEO of the group's vast wine-and-spirits division, part of a broad reshuffle at the French luxury giant as it navigates changing spending in the sector.

The move sets up the younger Arnault in a key management position in a core LVMH unit hit particularly hard. The leadership changes are the latest in a wider generational shift in the company's management as Bernard Arnault positions his children to one day take over the conglomerate.

Bernard Arnault, now 75, in recent years raised the retirement age for LVMH's chairman and CEO to 80.

LVMH said Thursday that executive committee member Jean-Jacques Guiony would take on the role of CEO of wines and spirits division Moët Hennessy, starting in February. The younger Arnault will become the division's deputy.

The company also said its previously named new group chief financial officer, Cecile Cabanis, would take up her role in February. She replaces Guiony.

LVMH last month reported lower third-quarter revenue that missed market expectations. The company -- considered a bellwether for the luxury industry -- reported weaker markets around the world, including drops in China, once a mainstay of demand in the sector.

The sharpest drop, though, was recorded at LVMH's wines and spirits business, which houses brands such as Hennessy cognac and Moet & Chandon Champagne. The company posted a 7% fall in organic revenue. The spirits industry is struggling with a normalization of consumption trends after a boost during the pandemic and trade tensions between China and the European Union.

LVMH also named Charles Delapalme as CEO of its Hennessy cognac brand, taking over from Laurent Boillot, who will assume a new role to be announced later.

Guillaume Motte, CEO of Sephora, will become a member of the executive committee starting Jan. 1, while Maud Alvarez-Pereyre will become head of human resources for the LVMH group from the start of next month.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 14, 2024 05:40 ET (10:40 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Arnault Son Climbs LVMH's Top Ranks in Further Leadership Reshuffle -- Update

Comments