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LVMH has named one of its billionaire owner’s sons, Alexandre Arnault, as deputy chief of its wine and spirits division as part of a leadership reshuffle at the French luxury group.
Alexandre Arnault, the 32-year-old son of Bernard Arnault, will take up the role at Moët Hennessy in February after three years at New York-based jeweller Tiffany, which LVMH bought for $15.8bn in 2021.
He will serve as deputy chief under Jean-Jacques Guiony, who hands over his role as chief financial officer to Cécile Cabanis. She was lined up to replace him after joining the group this year.
LVMH announced the new appointments on Thursday, with Guiony replacing Philippe Schaus, who after two decades at the group will “begin a new chapter in his career, focusing on non-executive roles”, the company said.
All five of Arnault’s children have operational roles in the group, and any changes are closely observed for indications of who might one day take over from their 75-year-old father. Alexandre Arnault, along with his younger brother Frédéric, the 29-year-old head of LVMH’s watchmaking group, joined the board this year, following in the footsteps of their two elder siblings and leaving only the youngest, Jean, without a seat.
The changes take place within the context of a wider reorganisation of the group, as an older generation of executives close to Bernard Arnault step back and his children take on more prominent roles in the family-controlled company.
Charles Delapalme, a senior executive at the group’s second-biggest brand Dior, will take over as chief executive of cognac brand Hennessy, which has been hit by weak demand in China and overstocking in the US following a Covid-era rise. He replaces Laurent Boillot, whose new responsibilities the group said would be announced at a later date.
The reshuffle at Moët Hennessy comes after it suffered an 8 per cent fall in organic sales in the first nine months of the year, the sharpest decline across all divisions, as global demand for luxury goods ebbed.
LVMH has been hit with a slump in demand, reporting a bigger than expected fall in sales in its most recent quarter due to weakness in China, as the downturn for luxury brands in the world’s second-largest economy deepens.
Analysts have cut their full-year estimates for much of the industry after a difficult quarter. Citi noted that both fashion and leather goods, LVMH’s biggest division and the industry’s bellwether, and wines and spirits were experiencing “greater than expected demand pressures in Asia” as it cut its guidance in October.
Struggling Gucci owner Kering has warned its full-year operating profits will halve this year compared with last, while high-end Hermès has continued to outperform the industry.
On Thursday LVMH added that Sephora’s chief executive Guillaume Motte would join the executive committee, a day after the group announced the abrupt departure of its longtime human resources director and executive committee member Chantal Gaemperle “to pursue new projects”. Gaemperle had been at LVMH for 17 years.
LVMH shares were up 0.7 per cent in morning trading at €578.
