LVMH shakes up management to reflect changes in luxury sector
The world’s largest luxury group, LVMH, has moved top talent around its many boardrooms in what is, according to the New York Times, “a sign that the turbulence that has significantly altered the luxury creative landscape in recent years has moved to the executive suites.” After 20 years as chief of Christian Dior, Sidney Toledano will become chairman of the LVMH Fashion Group, which is composed of eight smaller brands, including Céline and Givenchy.
LVMH’s share price has appreciated by 36% so far this year
SOURCE: Yahoo Finance
Mr. Toledano said that it was “the right moment for change” adding that, when LVMH’s top dog, Bernard Arnault, broached the idea of a move around “I accepted before he finished asking.” The reason is simple: Mr. Toledano is enthusiastic about luxury, and wants a new challenge. He said:
“I look around and see people retiring, and that is something I hate. I was never bored at Dior, but it was time for a new direction. I believe in the luxury market — I don’t need to see analysis from consulting firms — and think we can catch more market share.”
Mr. Toledano is one of the biggest names in luxury fashion. He oversaw Dior’s ascent to become a multi-billion dollar brand, and has developed a network of key people throughout the industry that once worked for him. These include Louis Vuitton’s CEO, Michael Burke, and Jimmy Choo’s CEO, Pierre Denis, amongst many others.
Mr. Arnault made a comment on the new appointment, saying: “Sidney Toledano is the driving force behind the huge success of Christian Dior Couture around the world. I want to offer my profound gratitude and am delighted that we will continue to work together and benefit from his expertise.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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