Christian Dior CEO Ends His Long Run -- WSJ
09 Novembre 2017 - 09:02AM
Dow Jones News
Toledano leaves brand after 20 years to lead LVMH Fashion Group;
job goes to Fendi chief
By Matthew Dalton
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (November 9, 2017).
PARIS -- Sidney Toledano plans to step aside after 20 years as
chief executive of Christian Dior Couture as corporate parent LVMH
Moët Hennessy Louis Vuitton seeks to inject new blood into its
senior ranks.
Wednesday's announcement marks the end of an era at Dior, during
which Mr. Toledano, 66 years old, turned the elite brand into a
global fashion powerhouse with annual sales of more than EUR2
billion ($2.3 billion).
Pietro Beccari, the current chief executive of Fendi, also part
of LVMH, was named to replace Mr. Toledano. Mr. Beccari is highly
regarded within LVMH for having engineered a turnaround at Fendi.
Under his tenure, sales grew from an estimated EUR600 million to
EUR1 billion.
"Pietro has an excellent track record," said Bernard Arnault,
the French billionaire who is chief executive and controlling
shareholder of LVMH.
Mr. Arnault gave Mr. Toledano a new job as head of LVMH Fashion
Group, which manages some of the brand's smaller fashion labels
including Celine, Givenchy and Marc Jacobs. Mr. Arnault suggested
the move to Mr. Toledano, and he agreed, Mr. Toledano said. He will
start the new role early next year.
"He never imposed something on me," Mr. Toledano said in an
interview. "I said I want a new challenge."
Wednesday's move is the first major shake-up at Dior since Mr.
Arnault earlier this year spent EUR12 billion to unite the fashion
house with LVMH. Previously, the Arnault family owned part of Dior
through a holding company that also owned part of LVMH. But Dior
the brand was independent from LVMH, even though the companies
cooperated extensively under Mr. Arnault's control.
When Mr. Toledano took over at the brand in 1998, annual sales
were around EUR200 million. He embarked on a store-building spree
and expanded the business dramatically in Asia. He also anchored
the company as designers came and went. He clashed with Hedi
Slimane and fired John Galliano after the designer was recorded
shouting anti-Semitic insults at a bar in Paris. Mr. Galliano
apologized and said he was seeking help.
The move elevates Mr. Beccari to one of the top spots in the
fashion world and Mr. Arnault's luxury empire. Dior's sales have
surged in recent years, propelled by strong demand in Asia. The
brand, however, is significantly smaller than French rival Chanel
and should have room to grow, says Luca Solca, analyst at Exane BNP
Paribas.
"The benchmark for Dior is Chanel," Mr. Solca said. "It has a
similar allure and sophistication and it's coming from the same
background, which is couture."
The move leaves a leadership hole at Fendi, which has become
LVMH's third-largest fashion brand after Louis Vuitton and Dior.
Mr. Beccari helped turn around Fendi by boosting its
digital-marketing efforts and introducing a line of new bags that
could be accessorized with pompoms and shoulder straps.
"The big thing will be how they're going to replace Beccari,"
Mr. Solca said. "Fendi needs to maintain its momentum."
Mr. Toledano will now devote his attention to smaller brands
that collectively comprise a significant chunk of revenue for LVMH
and are seen as growth opportunities for the company. The division
also houses Marc Jacobs, which has been underperforming in recent
years.
"I will have to meet the team, talk with Marc, talk with the
CEO," Mr. Toledano said.
Write to Matthew Dalton at Matthew.Dalton@wsj.com
Corrections & Amplifications LVMH Moët Hennessy Louis
Vuitton was incorrectly referred to as LVMH Louis Vuitton Moët
Hennessy in an earlier version of this article. (Nov. 8, 2017)
(END) Dow Jones Newswires
November 09, 2017 02:47 ET (07:47 GMT)
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