Bernard Arnault is going straight ahead. LVMH is always on the hunt for opportunities in the market, ready to sniff out the next prey to enlarge its empire (rather than divide it, as Bloomberg suggests). The latest rumour sees the French luxury giant circling Schiaparelli. Rumour that has found vigour in the historical friendship between the Arnault and Della Valle families, owners of the brand. But, also, by the presence of Sidney Toledano and Michael Burke, two top LVMH executives, at the brand’s latest fashion show. Bernard Arnault is also continuing his moves for succession. And he will appoint his sons Alexandre, 31, and Frédéric, 29, to the LVMH board. The two will join their siblings Delphine and Antoine.
The old friendship
“Diego (Della Valle, ed.) and I are old friends and neighbours in Miami”, Michael Burke, future president of the LVMH Fashion Group, explains to Fashion Network about his presence at the show. “We are just here to see a great fashion show by a very interesting designer”, Sidney Toledano, the current president of the Fashion Group, remarked instead. While Diego Della Valle said he was very happy to own Schiaparelli, denying any desire to sell the fashion house. Which designer Daniel Roseberry has transformed into a successful haute couture brand. And, clearly, what more ideal partner would there be than LVMH to grow Schiaparelli?
LVMH’s next prey
Much has been speculated about the friendship between Bernard Arnault and Diego Della Valle. Delphine sas (of the LVMH group) owns a 10% stake in Tod’s. And insiders have long expected a sale of the Italian group to the French. Ever since (May 2021) Della Valle himself declared that he wanted more free time to devote to his grandchildren. He then said: “If I sell, I sell to LVMH”. And so, Della Valle may not be selling (for now) the Tod’s group, but Schiaparelli. To further enlarge LVMH’s collection of brands. The same collection that, according to Bloomberg, would penalise the company’s market value.
Succession
Dividing up LVMH would also make succession easier. But the boss of the French company seems to have other ideas. According to the Financial Times, Arnault will appoint two more of his sons to the LVMH board, further consolidating the next generation of the family’s control over the world’s largest luxury group. Alexandre, 31, and Frédéric, 29, will join the LVMH board. A decision that is being interpreted as helping to see which of his five sons will be able to take over his role. The two appointments will have to be voted on by shareholders at the annual general meeting in April. Only the last of Bernard’s sons, Jean, 25, remains outside the board.
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