LVMH - The Luxury Goods Conglomerate

[Nimsay]

@Lola701 Why do you think Bernard is so interested in disinvesting Marc?

Based on:

…When you think that LVMH still owns Kenzo perfumes, Loewe perfumes or even Givenchy perfumes, you understand that selling YSL beauty was a dumb move. Btw I suspect that Arnault might get rid of Marc Jacobs one day even more considering that Coty handles the beauty now…

 

[Lola701]

@Lola701 Why do you think Bernard is so interested in disinvesting Marc?

Based on:

I think Bernard loves and respect Marc the person but unfortunately, all the attempts he mad to elevate the house never worked (I remember in one AG, he mocked the kind of mass market business of MK and the irony is that MJ is in reality similar).
The brand clearly doesn’t make sense in their current portfolio and the perspective of growth there will probably mean « going mass ».
One could argue that they have Kenzo and Patou. But LVMH still has Kenzo parfums and the only thing they need is a strong creative director to push the cachet of the brand. I’ve heard that Kenzo by Nigo is not a success. In a way it’s not bad. I think they should give the brand to one of the LVMH Prize contestant tbh.

And regarding Patou, it’s a very small operation and they can still have control over it.
I think that when Fendi will surpass the 3B and Givenchy reach 1.5/2b, a brand like MJ wouldn’t necessarily be a particular asset in the portfolio.

And you can sense that there’s not real sense of pride from the people at LVMH to have MJ as brand despite it being a financial success overall.

 

[Nimsay]

I think that American culture. Specifically NYC culture - where all the money is - so its defacto American culture. Is all about being an appearing as European as possible. It started with the Astors and whatnot trying to buy into royal titles…

Its a very NYC to try to become and be as European as possible. The idea of a Grand Tour still exists in NY. In NYC being credentialed as Cosmopolitan is the highest highest status. NYers want Euro labels because that is NY heritage that European status symbols are the highest.

Even Tom Ford struggles with his American heritage hamstringing his luxury aspirations. I think the only reason TF is viewed above other American labels is simply because he is based in Milan - upholding this idea that Americans dont have a upper-tier fashion world. MJs best bet is a Polo RL competitor. I really think Arnault understands his limits… that to meet the needs of that market he will need a whole new teams and a new skillset for himself to measure success. However MK was able to build his own conglomerate off $300 Dior dupes so there is money to be had.

 

[PDFSD]

NEWS

Could Hermès overtake Louis Vuitton in terms of revenue?​

Posted On April 15, 2024 CPP-LUXURY

Does Hermès have the potential to overtake rival Louis Vuitton in terms of revenue? According to Citigroup analysts, overtaking is possible: the Faubourg-Saint-Honoré maison would in fact have all it takes to become the largest brand in the luxury sector within three years.

The US banking giant predicts that the house that produces the Birkin and Kelly bags is destined to reach 20 billion euros in revenues (21.3 billion dollars) by 2027 or earlier. A milestone that LVMH’s flagship brand achieved in 2022, while Hermès generated a turnover of 13.4 billion euros in 2023.

According to Thomas Chauvet of Citi, the gap is destined to close as soon as possible, also because Hermès would be better structured to gain new market shares compared to its competitors. “Hermès enjoys one of the most predictable growth, margin and cash flow profiles in the luxury sector,” Chauvet said.

The analyst highlighted how control over distribution and growth opportunities in categories beyond leather, such as ready-to-wear, watches, jewelry and tableware are the aces up the sleeve of the fashion house born as a saddlery in 1837.

Despite current fears of a slowdown in demand, Hermès shares have outperformed other luxury stocks with a 20% gain in the first few months of this year. A figure significantly higher than that recorded by the sector in the same period (+6.8%), while LVMH increased by 8.2%.

 

[Olaffo]

Im keeping my fingers crossed for Hermes because they deserve it: top quality products, breathtaking campaigns, consistent visuals from ages, no drama associated with the brand, also have not fall into cheapness hole like LV etc. There are plenty reasons to celebrate that, LVMH contributes enough to cheapening of luxury market that Hermes being one of the handful of truely luxurious houses should lead the way.

 

[PDFSD]

LVMH revenues in Q1 decline 2 percent​

Posted On April 16, 2024 CPP-LUXURY

LVMH said revenue took a hit in the first quarter as the normalization of the luxury industry’s growth rates impacted its sales of high-end goods, including Champagne and jewelry. Overall group sales were down 2 percent at actual exchange rates to 20.69 billion euros in the three months ended March 31, following a 5.5 percent increase in the previous three months.
This represented a rise of 3 percent on a like-for-like basis, down from the 10 percent recorded in the fourth quarter, but in line with market expectations. Organic sales at LVMH’s key fashion and leather goods division were up 2 percent, following a 9 percent increase in the fourth quarter, also matching the consensus forecast from analysts.

The watches and jewelry segment reported a 2 percent decline in like-for-like sales, while the wines and spirits division saw a 12 percent drop. Bucking the overall trend were perfumes and cosmetics, up 7 percent, and selective retailing, with a sales rise of 11 percent.

Earlier this year, LVMH chairman and chief executive officer Bernard Arnault sought to put a positive spin on the sector slowdown after three years of post-pandemic euphoria, but he was clearly banking on less anemic growth rates than the latest figures suggest.
“We have reached a stage where we no longer need such strong growth and for me, between 8 and 10 percent is ideal,” he said at the time, noting that he prefers to focus on the desirability of his brands with exclusive products, rather than chasing higher sales.
LVMH shares have risen by more than 8 percent since the start of the year, but some analysts have downgraded the stock, noting that sluggish Chinese demand is likely to continue weighing on the industry for the foreseeable future.

“For shares to go higher still, we think upgrades are needed and that these are unlikely to materialize soon, especially knowing that the basis of comparison is even tougher in [the second quarter] for fashion and leather,” HSBC said in a recent report.
In a mixed bag of economic indicators, China reported on Tuesday that its economy grew 5.3 percent in the first quarter, faster than expected, but March retail sales came in below expectations, suggesting the outlook for consumer spending remains cloudy.

French luxury group Kering sent shudders through the market last month when it warned that it expects first-quarter revenues to fall 10 percent in like-for-like terms, with its star brand Gucci set to record a decline of nearly 20 percent year-on-year.
While Kering is clearly underperforming its industry peers, the rare profit warning underscored the challenges facing high-end brands as China struggles to bounce back after three years of restrictions designed to limit the spread of COVID-19.

Shareholders are also expected to approve the appointments of Arnault’s sons Alexandre and Frédéric to the board. Alexandre Arnault, EVP of product and communications at Tiffany & Co., and Frédéric Arnault, CEO of LVMH Watches, will join their siblings Antoine Arnault, head of communication, image and environment at LVMH, and Delphine Arnault, chairman and CEO of Christian Dior Couture, on the board.
That leaves the youngest sibling, Jean Arnault, who is in his mid-20s and is marketing and product development director for watches at Louis Vuitton. “He’s got time, he’s young,” his father commented at a press conference in January where he announced the nominations.

 

[Nimsay]

ok so arnault is going to run lvmh into the ground with his kids. Its very hard to transfer that desire for money when you grew up fantastically rich.

None of his kids have displayed a scintilla of skill. They spent a fortune on tiffany and where is it now ? Those stupid collabs moved no needles. Tiffany is still nowhere … tiffany needs a top to bottom redesign and several lines be phased out and replaced. Remember the dumb beyonce and basquiat nonsense… The LVMH Scions formula of collabs doesnt work anymore. They shouldve expected it and planned for that. They didnt which shows hubris and is shocking. Like this is serious business darling. What do you mean you didnt have another strategy for your billion dillar company. They will get eaten alive by the billionaire hedgefund managers who see LVMH as a golden calf to dismember and sell off to the highest bidder.

Not to mention Delphine at Dior. Dior literally seems to have no strategy whatsoever. Besides collabs and limited editions.

Also as someone who was at watches and wonders … Jean looks ridiculous sitting next to rolex chopard iwc glashutte longines management. Like a little checkers child next to chess masters.

No none of the kids impress me besides maybe Frederic?

 

[GRCF]

ok so arnault is going to run lvmh into the ground with his kids. Its very hard to transfer that desire for money when you grew up fantastically rich.

None of his kids have displayed a scintilla of skill. They spent a fortune on tiffany and where is it now ? Those stupid collabs moved no needles. Tiffany is still nowhere … tiffany needs a top to bottom redesign and several lines be phased out and replaced. Remember the dumb beyonce and basquiat nonsense… The LVMH Scions formula of collabs doesnt work anymore. They shouldve expected it and planned for that. They didnt which shows hubris and is shocking. Like this is serious business darling. What do you mean you didnt have another strategy for your billion dillar company. They will get eaten alive by the billionaire hedgefund managers who see LVMH as a golden calf to dismember and sell off to the highest bidder.

Not to mention Delphine at Dior. Dior literally seems to have no strategy whatsoever. Besides collabs and limited editions.

Also as someone who was at watches and wonders … Jean looks ridiculous sitting next to rolex chopard iwc glashutte longines management. Like a little checkers child next to chess masters.

No none of the kids impress me besides maybe Frederic?

I have to ask: What exactly about Frederic is so impressive? He and Jean look out of place, out of their depth, and give off zero confidence.

I can’t speak for merit, intelligence or any serious skill because I don’t know them, but just by appearances alone, if I were an LVMH stakeholder boy I am sure glad Delphine and Antoine are there. Frederic and Jean look like Trump in this:


Actually, Jean inspires a bit more confidence than Frederic does. He may have gone to Polytechnic but he looks no more apt to run anything than Trump does the US. It takes a lot more than being book smart to be as successful as his father and his sister.

 

[Lola701]

I watched the Assemblee Générale….
Is it me or Arnault was throwing subliminals at Kering.
He mentioned many times the longevity of the designers and also of the executives. He thanked his team in lengthy speeches…Some jabs to what is happening at Kering lol.

Hmmm…
I don’t agree with your comment @Nimsay because the kids actually contributed a lot to the group.
Delphine is the first one to have a full official executive position as a CEO and clearly now, in the economic context, she is playing safe and focusing on expansion but saying that none of the kids displayed skills is a stretch.

I think nowadays, and for the past decade maybe, they have found ways to be integrated in the group while making it feels relevant to their personal interest.

We all know that Delphine was involved in the choice of designers for the brands of the group. She is great with talents, her strategy for Vuitton paid and Burke was a great mentor.

Alexandre had to idea to buy Rimowa and completely revamped the brand as a status symbol for travel. He has ideas.
Tiffany was a gamble and no matter how controversial his decisions were in terms of Marketing (he is not the CEO), they worked.

Antoine I think is more at ease in communications and corporate stuff. We saw that he doesn’t have the drive to carry a whole brand. Berluti could have been better than what it is.

The two brothers are interested in watches and technology. I think ideally they would have loved to work for a tech company but Tag Heuer is doing good and for Vuitton watches, it’s a tremplin.

I think LVMH is more strongly armed to face the challenges of the industry than some of their competitors because they are touching in so many parts of the industry at the same time, with different brands having like different pin points in the industry.

You are focusing on the short term strategy. Collabs is short term, much like capsules and little events thrown to boost the activity but you should look at the long term. Now there’s a war on real estate, a lot of brands are transforming into lifestyle operations. The lifestyle aspect is motivated by the aspirational customer. Fragrances have now became again aspirational entry priced luxury products.

Tiffany cannot be completely redesigned because it’s still a very lifestyle oriented company…Contrary to Bulgari which is the real competitor to Cartier.

Every question or concern cannot be simply solved by a creative solution or « redesign », even more when you compare the historic markets and the growing markets. Things takes time, even more in that world.

 

[PDFSD]

LVMH could sell Marc Jacobs​

Posted On April 30, 2024 CPP-LUXURY

LVMH Moet Hennessy Louis Vuitton SE is exploring options for its Marc Jacobs fashion brand amid interest from potential buyers, people with knowledge of the matter said. The fashion giant has been working with advisers to study possibilities for Marc Jacobs after getting approaches from suitors, the people said. The brand could attract bids from other consumer companies as well as private equity firms, the people said, asking not to be identified because the information was private.
The review is in the early stages and LVMH hasn’t made a final decision on how to respond to the interest. The luxury conglomerate could continue growing the business itself, according to the people. A representative for LVMH said the company strongly denies it’s considering a sale of Marc Jacobs, declining to comment further.
It’s relatively rare for LVMH to divest any of the brands in its portfolio. One of the last major disposals was in 2016, when it agreed to sell Donna Karan and DKNY for an enterprise value of $650 million. Any deal would help LVMH to capitalise on a years-long turnaround of Marc Jacobs and allow it to offload a brand in the affordable luxury category in order to focus on higher-end offerings.
Fashion designer Marc Jacobs, 61, was an artistic director for more than a decade at the Louis Vuitton brand, which is LVMH’s biggest profit contributor. The New York native’s namesake brand was founded in 1984 alongside business partner Robert Duffy. LVMH owns about 80 percent of the brand, while Jacobs and Duffy own the remainder.
Marc Jacobs sells products like The Tote Bag that retail for €550 ($588) in France, much lower than the €1,500 ($1,603) price tag for a Louis Vuitton Neverfull bag. It ventured into personal care in 2007, debuting the Marc Jacobs Daisy perfume with the famed floral cap and subsequently launched a beauty collection in 2014, according to its website.
LVMH has restructured Marc Jacobs in recent years, which led to a simplification of its product offering. The profitable brand recorded about €600 million ($642 million) of sales in 2023, one of the people said. LVMH doesn’t break down financial performance by label.
Paris-based LVMH is the world’s biggest luxury conglomerate, having amassed 75 labels ranging from Tiffany & Co. to Christian Dior and champagne maker Dom Perignon.

 

[Lola701]

Thanks for posting the news @PDFSD !

See, @Nimsay what we talked about earlier in this thread. I could even quote myself on this one…
Now, the news is in the table. It might not happen tomorrow but Marc Jacobs could be a fabulous asset to Tapestry (as it makes sense in their portfolio). Marc Jacobs has the potential to be as big as Michael Kors while remaining cooler.

Now, if the Qataris wants to play the HF game, they can acquire Versace, which could make up for the loss of Valentino.

I wonder if Marc would still like to be part of the fashion game if/when the brand is sold. I don’t think Marc is one of those designer who is invested in the strategy. So, he could remain creative director of his own brand, do his annual show and put out a team to handle his brand. However the good relationship he has with Arnault could open some doors for him, if he is interested…Like Dior!

He can potentially be a great talent for Dior! The brand is more global, the entities are separated and he can be focused on fashion and campaigns. Delphine, who is really products-oriented could help as an asset. Plus, there’s a mutual respect there.

 

[Olaffo]

WEEKLY HIGHLIGHTS MAY 6-10

Richemont snapped up the small Milan-based jeweler Vhernier, while Watches of Switzerland Group (WoSG) acquired the U.S. subsidiary of Roberto Coin.

misstweed.com

So MJ stays at home bc nobody wants to buy it. Ouch!

 

[PDFSD]

16 May 2024
BoF PROFESSIONAL
LUXURY

LVMH Said to Shake Up Fashion Group Leadership​

Former Louis Vuitton CEO Michael Burke is stepping back from overseeing LVMH’s sprawling Fashion Group just four months after he was named the unit’s chief executive, BoF has learned.

 

[GRCF]

16 May 2024
BoF PROFESSIONAL
LUXURY

LVMH Said to Shake Up Fashion Group Leadership​

Former Louis Vuitton CEO Michael Burke is stepping back from overseeing LVMH’s sprawling Fashion Group just four months after he was named the unit’s chief executive, BoF has learned.

I wonder who will replace him. Lauren Sherman mentioned in The Puck a couple of weeks ago that Delphine was rumoured to be taking on additional responsibilities within the fashion group in addition to her role as CEO. I could see this, after all Antoine holds multiple roles within the group himself. Otherwise who else could replace Burke replacing Toledano?

 

[Kimihiro]

This is major. No sign of conflict?

 

[vn varenne]

It seems that Sidney Toledano will be back at his old position.

 

[PDFSD]

16 May 2024
BoF PROFESSIONAL
LUXURY

LVMH Said to Shake Up Fashion Group Leadership​

Former Louis Vuitton CEO Michael Burke is stepping back from overseeing LVMH’s sprawling Fashion Group just four months after he was named the unit’s chief executive, BoF has learned.

full text :

PARIS — Former Louis Vuitton chief executive Michael Burke is stepping back from his role overseeing LVMH’s Fashion Group — at least in its existing configuration — just four months after taking the helm of the unit that currently houses all of the conglomerate’s fashion brands apart from Vuitton, Dior and Loro Piana, sources familiar with the matter said.

Since April, executives including Dior CEO Delphine Arnault and Sidney Toledano, Burke’s predecessor who transitioned to an advisory role in February, have stepped in to manage key matters at some of the division’s labels, which include Celine, Fendi and Loewe, the sources said.
French investigative website Glitz Paris has also reported on Toledano’s return. Burke’s deputy, Pierre-Emmanuel Angeloglou, remains in his role overseeing the Fashion Group’s smaller brands, including Kenzo, Marc Jacobs, Pucci and Stella McCartney.
Whether Burke will exit his role or simply take on a retooled scope remains unclear. A representative for LVMH issued a blanket denial regarding the sources’ claims, declining to elaborate.


Burke has been a trusted deputy of LVMH’s chairman and controlling shareholder Bernard Arnault for over four decades, first working with the French billionaire when he was focussed on developing real estate projects in the US in the early 1980s. Burke went on to serve as CEO of Fendi, Bulgari and Louis Vuitton, before being named chief of LVMH’s Fashion Group in January.

There, Burke inherited a tricky portfolio: Givenchy is without a designer, while Hedi Slimane, the creative director of Celine, has been engaged in a thorny contract negotiation that could lead to his exit, sources in the group say.
And after months of negotiations aiming to place former Gucci creative director Alessandro Michele in a top role at LVMH, talks fell apart and Michele went to Mayhoola- and Kering-owned Valentino.

Meanwhile, the rationale for continuing to house billion-euro-plus businesses like Celine, Fendi and Loewe in the same unit as smaller labels like Pucci and Kenzo — which face very different challenges — has come into question in recent years. Celine, for example, is now the group’s third biggest fashion brand, HSBC estimates, having surpassed labels like Fendi (which was previously managed outside the Fashion Group structure) and Loro Piana (which still is).

Complicating matters further, the luxury industry’s growth has also cooled following a multi-year surge. LVMH reported fashion and leather goods sales up 2 percent on an organic basis in the first quarter, its slowest growth in four years.
The news comes with LVMH’s senior ranks in flux beyond the Fashion Group. In April, Antonio Belloni, the group’s second-in-command as deputy CEO, exited the company, with Stéphane Bianchi (formerly head of the watches and jewellery division) promoted to the role. Chairman Bernard Arnault, 75, also added two more of his children, Alexandre and Frédéric, to the company’s board during the company’s annual meeting last month.

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.

 

[Lola701]

I’m not surprised.
Michael Burke’s wife died last year from Cancer so taking up big responsibilities right after having to deal with it was a bit of a premature decision.

He probably needs a bit of time out of the business for himself and his children.

For the most part, it’s internal hiring so it’s more about who is going to lead a strategy created by Bernard, Delphine and Sidney than something else.

Veterans executives at LVMH are in a transitional phase anyway.

They needs to get rid of Nigo and give Kenzo to a more complete creative director.

Kenzo could be THE CONTEMPORARY brand of LVMH. A success of Kenzo would make them more comfortable in selling Marc Jacobs.

 

[PDFSD]

It’s all change again at LVMH’s Fashion Group
Astrid Wendlandt /MISSTWEED
19/05/24

Michael Burke has discreetly left his position as CEO of LVMH's Fashion Group several weeks ago, less than three months after starting on Feb. 1, sources with first-hand knowledge of the matter have said.

Burke's unexpected departure has prompted LVMH CEO Bernard Arnault to call back his predecessor Sidney Toledano, delighting the former Dior boss. Toledano does not like the word retirement. The LVMH veteran, who turns 73 in July, has never made a secret of his desire to remain in charge in some capacity or another at the group for as long as Arnault would let him.

The management reshuffle highlights how difficult is LVMH's changing of the guard. The men Arnault trusts the most have reached retirement age and many of his new lieutenants have not yet passed the test of time.

Arnault did not expect Burke, 67, to depart so abruptly. His stalwart associate left for personal reasons, several people close to the matter said on condition of anonymity. The Franco-American led many of the group's businesses, including its main profit maker Louis Vuitton, until last year.

Burke's nomination, which Miss Tweed was the first to report in April last year, took a long time to come - a sign he was not certain to take the job. And now, Burke is going back to real estate deals, which he first did when he began working with Arnault in the United States in the 1980s, before the two friends started building LVMH together. He is currently working on the group's acquisition of some buildings in the United States and elsewhere, several industry sources said. Burke did not reply to requests for comment. A spokesman for LVMH denied the management reshuffle at the Fashion Group.

Arnault rewards loyalty. Toledano has been at LVMH for 30 years. His re-appointment was a quick short-term measure to prevent the Fashion Group from being headless for too long, the sources said.

However, Toledano is not alone at the helm of the Fashion Group. He is seconded by Pierre-Emmanuel Angeloglou, who was appointed managing director on March 11. At the time, LVMH said he would take over the "direct responsibility of a portfolio of brands within the Fashion Group division which include Fendi, Kenzo Mode, Marc Jacobs, Pucci, Stella McCartney, Patou and Off-White." It's not clear whether Angeloglou, who spent 23 years at L'Oréal and four years at Louis Vuitton, has the right profile to become CEO of the Fashion Group but eventually, Toledano will have to be replaced.

The fact that Arnault did not think of a potential replacement for Burke highlights how complicated it is for him to give the keys of the house of the Fashion Group to the new generation.

Burke's exit comes just after the departure of another pillar of the group's top command - Toni Belloni. In March, the Italian resigned as group managing director, a position he held for 23 years. Belloni also relinquished his post as chairman of the executive committee but stays within the group as president of LVMH Italy. He was replaced by Stéphane Bianchi, who previously looked after the group's watches and jewelry division, a job occupied now by Fréderic Arnault. Bianchi has not been with LVMH for very long.

He led Yves Rocher for many years and groomed Bris Rocher, the grandson of the company's founder before joining the luxury group in 2018. Bianchi is said to be an authoritative figure that many in the group fear. He has never accepted to speak with Miss Tweed.


DELPHINE ARNAULT

At the Fashion Group, Toledano will be seconded by the eldest of Arnault's five children, Delphine. She became CEO of Dior in February last year after being Executive Vice President for a decade at Louis Vuitton in charge of products.

The 49-year-old is the only Arnault child sitting beside the father on LVMH's executive committee. She will help Toledano choose new creative directors, something she has already done successfully, having recruited designers such as Jonathan Anderson for Loewe and Nicolas Ghesquière for Louis Vuitton more than a decade ago.

It's not clear whether Delphine Arnault will be given an official title at the Fashion Group on top of her responsibilities at Dior. "Nothing has been announced yet," several sources close to the group said when asked about her role and the return of Toledano as CEO. As of Friday, Toledano had not yet replaced Burke on the executive committee, according to LVMH's official website.

For the moment, Arnault does not wish to communicate about the move, several people with first-hand knowledge of the matter said. "It looks disorderly - just a few months after he started" one of the sources said

LVMH has never clearly spelled out the responsibilities of the person in charge of the Fashion Group. These include the appointment of CEOs, designers and key positions at the 13 brands that fall under its umbrella: Celine, Fendi, Loro Piana, Loewe, Givenchy and Kenzo, among others. The CEO also validates each brand's merchandising and marketing plan and oversees budgets for new boutiques as well as their location. "It's an HR and strategic advisory job," one source close to the group explained.


TO-DO LIST

The management upheaval comes as important strategic decisions need to be taken at several of the Fashion Group's brands. High up on Toledano's to-do list is the need to appoint a new creative director at Fendi. The brand's sales have been underperforming its peers for many years and were in decline in 2023.

Some fashion experts believe Pierpaolo Piccioli, who left Valentino in March, would be great to replace Kim Jones as creative director of Fendi. Piccioli would help build a strong Roman identity, tapping into his vast knowledge of the city's art and history, and celebrate in style Fendi's 100th anniversary next year.

Some fashion experts believe Pierpaolo Piccioli, who left Valentino in March, would be great to replace Kim Jones as creative director of Fendi. Piccioli would help build a strong Roman identity, tapping into his vast knowledge of the city's art and history, and celebrate in style Fendi's 100th anniversary next year.

But he comes with some drawbacks. Piccioli is great with haute couture and evening wear, but not so strong in daytime ready-to-wear. Also, his latest bag collections for Valentino were not a huge success. That could be a concern when considering him for Fendi, fashion head-hunters say. But these are not insurmountable obstacles.

Another brand that needs a new designer is Givenchy. It's been actively looking for a replacement since its creative director Matthew Williams left on Jan. 1st

Some industry sources say John Galliano, who designed two beautiful collections for Givenchy in 1996, is one of the many names in the hat. But his candidacy is a tricky one as the man has baggage.

Galliano is known as one of the most difficult designers for CEOs to handle due to his personality and character. He wants to control everything, which is not something LVMH would be comfortable with. But in terms of creativity and building a brand's desirability, he's one of the best in the industry. Galliano is now doing wonders at Maison Margiela, part of Renzo Rosso's OTB group. His March show inspired by the underbelly of Paris was the most applauded collection during Fashion Week. At the Met Gala in New York earlier this month, many ladies - including red carpet superstars such as actress Zendaya - paraded in his flamboyant dresses. Galliano has a natural talent for showmanship.

His outfits are theatrical and designed to impress.

He was hugely successful at LVMH's Dior for many years until 2011, when he was sacked after being caught on camera making anti-Semitic rants in a Paris bar. It's far from certain that Toledano, who was the person who kicked him out, feels comfortable taking him back, industry sources say. But Galliano would surely give the brand a convincing creative impetus.

There is also Celine with designer Hedi Slimane is on his way out, as Miss Tweed was first to reveal last month. Sales growth there has slowed down markedly in the past year, industry sources say. Celine's sales are now estimated at €2.1 billion. The brand has inundated the market with its Triomphe leather bags with the double C golden lock that looks a lot like that of Chanel. Many customers have grown tired of it, industry experts say. Now Celine needs to produce something new.

The timing of Slimanes exit has not yet been determined. It depends on how easily a replacement is found. Managing that transition is not going to be easy for Toledano and Delphine Arnault.


KENZO

Kenzo is also on the list of problems to solve. The brand founded by Kenzo Takada in 1970 has been struggling to reinvent itself. Few designers have been able to make it relevant since the departure of designers Carol Lim and Humberto Leon in 2019. The brand's creative director today is Japan's Nigo, who speaks neither French nor English. He has been producing mainly T-shirts and sweatshirts - what he knows best - but his designs have not seduced many clients. The demand for €150 T-shirts is not great in the current depressed environment. People want value for their money and are less willing to overpay for fashion.

Kenzo's sales have not been growing for many years and are now estimated to be around €250 million. Nigo's style has little in common with the relaxed chic tailoring and the leopard, zebra and other animal prints Kenzo was once known for. The brand today does not ooze the refinement it once had. Hence, consumers are unwilling to pay high prices for its wares.

Some fashion critics argue Nigo is not well coached by Kenzo's CEO Sylvain Blanc. He really could do better in terms of design, they say. The Japanese designer is close friends with Pharrell Williams, the popstar singer who is the menswear creative director at Louis Vuitton. "While Pharell is at Vuitton, I don't think they will get rid of Nigo as Pharrell keeps wearing Nigo's clothes." However, LVMH may eventually decide to part ways with Nigo if the group finds a suitable replacement.

Another of the Fashion Group's problem children is Stella McCartney. The environmentally friendly brand founded by the daughter of former Beatles star Sir Paul McCartney continues to lose vast sums of money. Its costly boutiques generate too little revenue, some industry sources say. Arnault invested in the brand to strengthen LVMH's "green" aura and benefit from McCartney's sustainable fashion expertise. However, he probably never expected that business would cost the group so much money.

And then there's Off-White, whose intellectual property rights belong to LVMH but whose license for its manufacture and distribution belongs to Farfetch's New Guards Group (NGG). NGG has been on the market for many months and has yet to find a buyer. Patou, led by the talented designer Guillaume Henry, is also under the Fashion Group umbrella. It has been developing nicely, but it's still tiny compared to its sister brands. As a result, it does not benefit from the same management attention and budgets as other bigger brands.


MARC JACOBS

LVMH has been quietly trying to trim the Fashion Group's portfolio in recent months, putting the Marc Jacobs brand on the market to test investors' appetite. The French group did not receive offers that matched its expectations, as Miss Tweed reported last week. Investors are not crazy. They know that the brand's peak is behind it and has hardly any boutiques left. It sells mainly through wholesale channels, outlets and online. The brand's 61-year-old founder Marc Jacobs is tied to the brand only until 2027. Without him, no one knows what will become of the New York-based label.

Luckily for Angeloglou and Toledano, there are a few strong success stories at the Fashion Group. The "quiet luxury" ready-to-wear brand Loro Piana has been exploding, thanks to its sober and elegant designs and white-soled suede loafers that are a huge hit, even among young consumers. There is also Loewe, whose original and creative handbags are high up on fashionistas' wish lists. The brand's fashion authority and aura keep growing year after year under the creative leadership of Jonathan Anderson. Loewe and Loro Piana enjoyed growth of more than 40 percent last year in a tough global market, several sources close to the group said. Loewe's revenues this year could reach as much as €1.5 billion, they forecast.

Pucci is another brand that is thriving even if it is still small compared to other labels in the Fashion Group. The popularity of these three brands will help make Toledano's job easier. But the list of problems he needs to solve remains impressively long.