Dive Brief:
- LVMH Moët Hennessy Louis Vuitton will name a new head of its Fashion Group division later this year as Sidney Toledano leaves the position to move to a different role within the French luxury conglomerate.
- Chair and chief executive officer Bernard Arnault told shareholders at the annual board meeting Thursday that Toledano, who has been with the company since 1994, will not be leaving but did not disclose details of the new position or name a successor.
- Rumors around the changes at LVMH have been swirling this week, with independent Paris news site Miss Tweed suggesting that former Louis Vuitton CEO Michael Burke was a frontrunner, and The Wall Street Journal discussing the succession possibilities for Arnault’s five children.
Dive Insight:
Toledano first joined LVMH almost 30 years ago as director of the leather goods division at Christian Dior Couture. He became chair and CEO of LVMH’s Fashion Group in February 2018, overseeing brands including Celine, Givenchy, Loewe and Marc Jacobs. He’s also a member of the LVMH executive committee.
At the meeting, Arnault praised Toledano’s long tenure.
“We will continue to work together in a different framework,” he said. “I won’t say anything further, but I will tell you about it next year in any case. A big thank you, Sidney, for your terrific work during all these years.”
A successor is expected to be picked within the next few months, but no names have been officially floated. LVMH has consistently declined to speculate.
Burke is seen as a strong choice to lead LVMH’s Fashion Group division. After leaving a 10-year term as chair and CEO of the Louis Vuitton label in February, he now reports directly to Arnault as strategic advisor to the chair.
The role might also go to one of Arnault’s children, though whispers also suggest one of them may be set to succeed Arnault himself. Delphine Arnault, 48, is the eldest child, and was given the chief executive role at Christian Dior, the second-largest brand in the Fashion Group, earlier this year. Her brother, Antoine Arnault, 45, is CEO of the listed company that holds the family’s stake in LVMH.
Profitability in LVMH’s fashion division has been strong, with fashion and leather goods reporting record levels of organic revenue growth of 20% in 2022. Earlier this month, Arnault, who is the world’s richest man, also saw his personal wealth grow to over $200 billion.
