LVMH Group announces key leadership changes amidst evolving luxury market dynamics.
- Alexandre Arnault appointed Deputy CEO of LVMH’s wines and spirits division, effective February 2025.
- Jean-Jacques Guiony becomes CEO of Moët Hennessy, succeeding Philippe Schaus after his 21-year tenure.
- Significant financial performance noted, with mixed results across various divisions in the first half of 2024.
- These strategic changes aim to address the financial challenges and boost growth in select segments.
LVMH Group, under the stewardship of Bernard Arnault, is poised for significant changes in its leadership structure, reflecting its adaptation to the volatile luxury market conditions. Alexandre Arnault, currently serving as Executive Vice President of Product, Communications, and Industrial at Tiffany, will transition to his new role as Deputy CEO of the conglomerate’s wines and spirits division, based in Paris, effective from February 1, 2025. He will closely collaborate with Jean-Jacques Guiony, who has been elevated to CEO and President of Moët Hennessy, following Philippe Schaus’s decision to explore non-executive avenues after an extensive 21-year career with LVMH.
Guiony, who commenced his journey with LVMH in 2003 as Deputy Finance Director and quickly rose to Chief Financial Officer in 2004, is expected to bring a wealth of financial acumen to his new role. His previous position as CFO will be succeeded by Cécile Cabanis, the erstwhile Deputy Finance Director. Meanwhile, Charles Delapalme is set to take over as CEO of Hennessy, succeeding Laurent Boillot, whose upcoming responsibilities are yet to be disclosed.
The reshuffle extends beyond the wines and spirits arena with Guillaume Motte, currently the CEO of Sephora, gaining a seat on the LVMH executive committee starting January 1, 2025. Such strategic appointments underscore the conglomerate’s dedication to fortifying its leadership amidst challenging market conditions.
During the first six months of 2024, LVMH registered revenues of €41.7 billion, reflecting a 1% dip year-on-year, amidst an industry-wide slowdown. Profits from recurring operations also saw a downturn, recording an 8% decline to €10.6 billion. However, segments such as fashion and leather goods, perfumes and cosmetics, and selective retailing showed marginal growth, registering increases of 1%, 6%, and 8% respectively. In contrast, the watches and jewellery, and wines and spirits divisions experienced setbacks, with declines of 3% and 9% respectively.
LVMH’s restructured leadership, featuring experienced executives like Alexandre Arnault and Jean-Jacques Guiony, aims to address these financial impediments by leveraging their extensive industry knowledge and strategic foresight. This reshuffle is indicative of LVMH’s proactive approach to sustaining its market position and driving growth in its core and emerging sectors.
The leadership changes at LVMH reflect a strategic response to the challenges posed by the current luxury market environment.
