The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Bernard Arnault is reorganising his holding company as the French billionaire seeks to ensure long-term family control over LVMH, the luxury empire he’s built.
Europe’s wealthiest person is turning Agache, his family holding company, into a joint-stock partnership. The change will guarantee that Agache’s “control over the LVMH group will be maintained over the long term,” according to a statement Thursday.
The conversion will not affect the current shareholding of Agache, the statement added.
Control of Agache will be exercised by Agache Commandite SAS, whose share capital will be held equally between the five children of Bernard Arnault. But he will be the managing general partner of Agache.
ADVERTISEMENT
Earlier this year, shareholders approved a plan to lift the limit of the retirement age of the LVMH chief executive from 75 to 80. Arnault, the current chief, is 73.
Arnault’s wealth is estimated at $134.8 billion, according to the Bloomberg Billionaires Index. LVMH is the owner of luxury brands such as Louis Vuitton and Christian Dior.
The Arnault family has a 48 percent stake in LVMH, according to a regulatory filing.
By Angelina Rascouet
Learn more:
Bernard Arnault Signals Intent to Lead LVMH Until He Is 80
LVMH said in a filing that it will seek to raise the age limit for the chief executive officer to 80 from the current 75 at next month’s annual general meeting.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.