MW Bernard Arnault's son to take up new job leading LVMH's struggling drinks division
By Louis Goss
LVMH Moet Hennessy Louis Vuitton has said the son of its current CEO, Bernard Arnault, is set to take up a new job where he will be tasked with boosting the performance of the world's top luxury conglomerate's struggling wine and spirits division.
Alexandre Arnault, the third-child of Europe's richest person, is set to take up his new position as deputy CEO of LVMH's wine and spirits division in February 2025 having worked for the past four years as an executive vice president at Tiffany & Co.
The 32-year-old's promotion to a top leadership position inside LVMH's wine and spirits division comes amid speculation his father, Bernard Arnault, is currently seeking to step away from leadership of the luxury giant he has led for over 30 years.
Bernard Arnault, who according to Bloomberg's Billionaire Index has a net worth of around $166 billion, is currently the sixth richest person in the world having helped form LVMH in the 1980s through a merger between Moët Hennessy and Louis Vuitton.
Today, LVMH is the world's biggest luxury company, with a market capitalization of EUR293 billion ($310 billion). The Parisian firm owns a multitude of top brands including watchmaker Bulgari, vodka producer Belvedere and fashion brand Christian Dior.
Bernard Arnault has five children, including two from his first marriage with Anne Dewavrin and three more with Canadian born concert pianist Hélène Mercier-Arnault. All five children currently hold top managerial positions at LVMH, with the oldest, Delphine, 49, now the CEO of fashion brand Christian Dior (FR:CDI).
Alexandre Arnault, who currently works as senior executive in charge of communications at LVMH subsidiary Tiffany & Co, has spent almost the entirety of his career working at various LVMH's subsidiaries including luggage maker Rimowa and jewelry seller Tiffany's.
At Tiffany & Co, Alexandre Arnault led major efforts to turnaround the jewelry seller's performance following LVMH's acquisition of the company in 2021, via a major marketing campaign that saw a lavish overhaul of the company's flagship store on New York's fifth avenue.
Prior to taking up a job at his father's company, the 32-year-old completed a degree in computer engineering at Télécom Paris, a highly selective university on the outskirts of France's capital city, before completing a masters in innovation at Paris's prestigious École Polytechnique .
Following a series of summer internships at companies including consultancy firm McKinsey and private equity firm KKR, Alexandre Arnault started his career as an investment analyst at LVMH before moving up the ranks of the firm, according to his LinkedIn profile.
Bernard Arnault, who is now 75 years-old, is currently LVMH's top shareholder, via his ownership of multiple stakes in the firm through various investment vehicles that give the French businessman major sway over the world's most valuable luxury company.
The Arnault family, which manages billions worth of investments through a family office called Groupe Arnault, currently owns a 97.5% stake in fashion brand Christian Dior which in turn owns a 41.29% stake in LVMH, according to FactSet data.
The Arnault family separately owns a 6.99% stake in LVMH directly, via its own family office, information from financial data provider FactSet shows.
Alexandre Arnault's appointment comes as LVMH's (FR:MC) share price has faltered over the previous year, due in large part to a sharp slump in sales from its wine and spirits division caused by falling demand for Hennessy in China.
In a call with investors last month, LVMH's leadership warned Chinese tariffs of European brandy could hit sales from LVMH's wine & spirits division even further. China accounts for around 20% of Henessy's sales.
In a post on X, formerly Twitter, Alexandre Arnault pointed to his own past achievements at Tiffany & Co, including the jewelry seller's collaboration with Jay Z and Beyonce.
"After four transformative years in Fashion & Leather Goods with @RIMOWA and these last four in Watch & Jewelry with @TiffanyAndCo, I'm excited to step into a new chapter within LVMH's Wines & Spirits division, embracing this foundational part of our Group's heritage," Alexandre Arnault said.
Alexandre Arnault joined Tiffany & Co shortly after the company was acquired by LVMH in 2021 for $15.8 billion. In the three years that have followed, LVMH's watches and jewelry has outperformed other segments of the luxury conglomerate's business.
LVMH had previously seen its sales boosted by a major boom in spending on luxury goods in the immediate aftermath of the COVID-19 pandemic driven by the opening up of international travel and the ending of lockdown restrictions.
Trump's threats to impose new tariffs on European goods now threaten to hit LVMH's sales even further if the U.S. government decides to turn its ire towards the luxury-goods sector.
Alexandre Arnault may, however, hold some sway over the U.S.'s new president having previously received praise from Trump last year, following a private dinner with him at his Mar-a-Lago resort in February 2023.
"He is a young man on the move, the son of one of the great businessmen and leaders in Europe, and in the World," Trump said of the heir to the LVMH empire in a post on X following the dinner.
-Louis Goss
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(END) Dow Jones Newswires
November 18, 2024 06:49 ET (11:49 GMT)
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