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Louis Vuitton, Dior Get New CEOs in LVMH Shakeup

Pietro Beccari will succeed Michael Burke leading LVMH flagship Louis Vuitton, while Delphine Arnault will become Dior’s new CEO as part of the luxury conglomerate’s biggest executive reshuffle in years.
Pietro Beccari will succeed Michael Burke leading LVMH flagship Louis Vuitton, while Delphine Arnault will become Dior’s new CEO as part of the luxury conglomerate’s biggest executive reshuffle in years.
Pietro Beccari will succeed Michael Burke leading LVMH flagship Louis Vuitton, while Delphine Arnault will become Dior’s new CEO as part of the luxury conglomerate’s biggest executive reshuffle in years. (Jean-François Robert, Brigitte Lacombe)

LVMH has named new CEOs at its two biggest fashion houses, Louis Vuitton and Christian Dior Couture, as part of a major executive reshuffle at the French luxury conglomerate.

Christian Dior Couture’s chief executive Pietro Beccari is set to succeed Michael Burke as CEO of Louis Vuitton, the luxury industry’s largest brand, LVMH said in a statement Wednesday.

Delphine Arnault, LVMH chairman Bernard Arnault’s eldest child and Vuitton’s executive vice president for product for since 2013, will replace Beccari as Dior’s president and CEO. It’s the biggest role yet to be held by a member of the family’s next generation even as all 5 of Bernard Arnault’s children have taken up key roles in the group.

LVMH insiders have long seen Beccari as a potential successor to Burke, aged 65, who has led Louis Vuitton since 2012. The Italian executive rose to prominence in the luxury conglomerate leading Vuitton’s marketing efforts from 2006 to 2012 before taking star turns as CEO of its Fendi and Dior brands.

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Since Beccari joined Dior in 2018, the brand’s sales have roughly quadrupled to nearly €9 billion in 2022, according to HSBC estimates. Beccari “accelerated the appeal and success” of Dior, Arnault said in a statement. “Monsieur Dior’s values of elegance and his innovative spirit have been given fresh intensity.”

“Under [Delphine’s] leadership, the desirability of Louis Vuitton products advanced significantly, enabling the brand to regularly set new sales records,” Arnault added.

The executive moves come amid a broader changing of the guard at LVMH, as chairman Bernard Arnault’s children ascend to new roles within the company and as stalwarts of the group’s tight circle of trusted managers approach retirement. In December it was announced that Arnault’s second child, Antoine, would replace veteran executive Sidney Toledano as CEO of the financial holding company through which the family owns its controlling stake in LVMH.

The changes “underline the bench strength and long-term custodian approach at LVMH,” RBC Capital Markets analyst Piral Dadhania said.

Vuitton Bigger Than Ever

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Michael Burke and Virgil Abloh at a party in 2021. (Bertrand Rindoff Petroff/Getty Images for Louis Vuitton)

Sales at Vuitton have expanded rapidly under Burke, one of Arnault’s most trusted lieutenants, and daughter Delphine Arnault. Working with designers including Nicolas Ghesquière, Kim Jones and Virgil Abloh, Burke and Arnault energised its image and elevated its product offer, reducing a dependence on monogrammed canvas by boosting sales of more sophisticated leather bags like the Capucine and Twist styles.

In 2018, Vuitton became the first luxury fashion brand to surpass €10 billion in annual sales. Since the coronavirus pandemic, revenues have accelerated sharply, reaching an estimated €20.6 billion last year, according to HSBC.

In recent months, the brand has flexed its newfound scale with bigger-than-ever marketing coups: it recently recruited rival football superstars Messi and Ronaldo to appear together in a World Cup campaign, and staged massive installations at flagship stores around the world to celebrate its collaboration with Japanese artist Yayoi Kusama.

That’s not to mention the house’s multidisciplinary tributes to late menswear designer Abloh, which have featured performances by dance troupes, marching bands, chamber orchestras and rap stars Tyler the Creator and Kendrick Lamar.

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Burke has “extended Louis Vuitton’s lead over competitors and promoted the heritage of Louis Vuitton while anchoring it in modernity,” Bernard Arnault said in a statement. “The cultural strength of Louis Vuitton has been fully affirmed.”

The pending management shakeup could be one reason the brand has been slow to name a replacement for Abloh, who died suddenly in 2021.

Burke will continue to work for LVMH as an advisor to Arnault, the group’s statement said.

From Vuitton to Fendi to Dior and Back

Dior CEO Pietro Beccari.
Dior CEO Pietro Beccari. (Fabrice Tayeau)

After leading marketing at Vuitton, Beccari took the reins at Fendi, where he elevated perception of the Roman fur and leather house while retooling its marketing and product offer to appeal to younger consumers. His 2018 move to Dior was part of one of the biggest executive shuffles in the history of LVMH.

As CEO, Beccari worked with designers Maria Grazia Chiuri and Kim Jones to create a more consistent, wearable and youthful Dior, with deft merchandising that saw the business grow to previously unimagined heights. Hit products like the Book tote, Bobby camera bag and relaunched Saddle helped Dior reduced its dependence on the flagship Lady Dior bag. During his tenure, the brand also worked to rebalance geographies, reactivating regions like the US and Europe where its market share had previously slipped while pursuing rapid growth in China.

The executive has a particular flair for creating immersive brand hubs that combine fashion, food, hospitality, art installations and craftsmanship demonstrations, as well as staging memorable marketing spectacles, such as Fendi’s 2016 “haute fourrure” show at the Trevi fountain (where models appeared to walk on water) or Dior’s 2021 recreation of an iconic photoshoot at the Acropolis in Athens.

Delphine Arnault was photographed with younger brothers Frédéric and Jean at Louis Vuitton's spring-summer 2022 womenswear show in Paris.
Delphine Arnault with brothers Frédéric and Jean. (Bertrand Rindoff Petroff/Getty Images)

More Key Appointments

Delphine is the only one of Bernard Arnault’s children to have served on LVMH’s executive committee. In addition to her role at Vuitton, she spearheaded and oversees the LVMH Prize, the group’s fund for young designers.

The group is bringing in top talent to support the executive, aged 47, as she takes on her first CEO role at a much larger Dior than when she started her career in the group at the brand from 2001 to 2013. The group named Charles Delapalme — a seasoned merchant who has led commercial teams at Louis Vuitton, Fendi and Dior — as Dior’s managing director.

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“We believe Dior will remain one of the fastest growing brands in the LVMH portfolio in the next 4 to 5 years,” RBC Capital Markets’ Dadhania said, estimating the brand could reach €10 billion in annual sales by 2025.

The group also said it would integrate oversight of its recent Tiffany & Co. acquisition with its broader Watch and Jewellery Division, led by Stéphane Bianchi. Previously, Burke had served as the brand’s non-executive chairman in addition to his role at Louis Vuitton.

Editors’ Note: This story has been modified 11 January, at 9am and 3pm B.S.T. Adds analyst reaction; additional details on Delphine Arnault’s role and Tiffany & Co. governance following an official statement by LVMH.

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.

Further Reading

Case Study | Inside the $7 Billion Dior Phenomenon

How did a 75-year-old brand triple its revenues in just four years? By overhauling its commercial offer, racing into e-commerce and investing in spectacular flagships, Christian Dior Couture has radically accelerated its business, transforming itself into “a homegrown Chanel challenger within LVMH.”

The Strategy Behind Dior’s New Megastore

CEO Pietro Beccari reveals how a sprawling revamp of Dior’s historic Avenue Montaigne hub fits into wider plans for the fast-growing brand. ‘It’s not a store, it’s a universe,’ he said.

About the author
Robert Williams
Robert Williams

Robert Williams is Luxury Editor at the Business of Fashion. He is based in Paris and drives BoF’s coverage of the dynamic luxury fashion sector.

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