Arnault Appoints Daughter to Lead Dior Amid Restructuring

Bernard Arnault has named his daughter Delphine to run LVMH's second-biggest brand, Dior. This is the latest step by the 73-year-old billionaire to elevate his children to key posts in his luxury empire.
The appointment of Bernard Arnault's son as the new CEO of Christian Dior SE comes a month after Antoine Arnault was given a wider role in the business. Antoine Arnault replaces Sidney Toledano as chief executive officer and vice chairman of Christian Dior SE, the holding company through which the family controls LVMH Moet Hennessy Louis Vuitton SE.
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The world's richest man, Bernard Arnault, has stirred up questions about succession at Europe's most valuable company, LVMH, by giving his children greater responsibilities. Last year, LVMH lifted the age limit of its CEO, allowing Arnault to stay at the helm until he's 80. There's no sign that Arnault plans to step back anytime soon, but with the family patriarch getting older, the question of who will take over the company is becoming more pressing.
Delphine's promotion will give her more exposure at Dior, according to Luca Solca, an analyst at Sanford C. Bernstein. This will allow her to be more involved in the company's operations and gain more experience in the industry.
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LVMH's share price rose by up to 2% during trading in Paris, valuing the luxury conglomerate at around €386 billion ($415 billion).
Arnault is now the world's richest person, thanks to his ownership of Champagne and Louis Vuitton bags. (1)
Delphine Arnault, 47, has been executive vice president of Louis Vuitton for the past decade. In her new role at Dior, she will work closely with Charles Delapalme, who is now the managing director at the brand.
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The younger sons from Bernard Arnault's second marriage are also involved with LVMH. Alexandre has been in charge of products and communications at Tiffany for two years. Frederic runs Swiss watchmaker Tag Heuer, while Jean is working on developing the watch category at Louis Vuitton.
Arnault on Wednesday also promoted Dior CEO Pietro Beccari to run Louis Vuitton, LVMH’s biggest brand. Burke will keep reporting to Arnault and get new responsibilities, according to a statement Wednesday.
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The recent reshuffle at Dior and Louis Vuitton comes at a moment when both brands are thriving. While LVMH doesn't break down financial numbers by brand, the fashion and leather goods unit's growth had been led by Dior in the third quarter. This division also houses Louis Vuitton as well as Fendi, Celine and other fashion labels.
In March, Beccari oversaw the re-opening of 30 Montaigne, Dior’s flagship store in Paris, after more than two years of renovation. By October, the boutique had drawn more than half a million visitors.
As part of a management reshuffle, Stéphane Bianchi, chairman and CEO of the watches & jewelry division, will now also oversee Tiffany and Repossi.