Editor’s Note
This article examines the recent executive transition of Frédéric Arnault, who moved from leading LVMH’s watch division to Italian luxury brand Loro Piana. It highlights how such a rapid change, while unusual in most careers, reflects the strategic mobility often seen within major luxury conglomerates.
Most people would be concerned if they were promoted to a role one day and moved on a year later, but it is safe to assume Frédéric Arnault — who became CEO of a newly created LVMH watches operation in January 2024 and has now moved to Italian luxury brand Loro Piana — will be sleeping easy.
Mr Arnault had been CEO of TAG Heuer since 2020 before being moved up to run the entire watch division of LVMH.
Like much of the Swiss watch industry, LVMH endured a difficult 2024.
Revenue from Watches & Jewelry fell by 2% and profit from recurring operations was down 28%.
The group does not break down performance by brand, but Morgan Stanley’s annual report on the state of the Swiss watch market reported that TAG Heuer sales rose by 9% last year while Hublot and Zenith turnover declined by 26% and 17% respectively.
LVMH, a dynastic family business and publicly traded $1 trillion corporation, is in the process of managing the succession from one generation of the Arnault family to the next.
Supremo Bernard Arnault’s five adult children have all run major brands within the company, and have often been moved upwards and sideways to give them a broad overview of the entire empire.
No new head of watches has been named following the departure of Frédéric Arnault, but Stephane Bianchi remains in place as CEO of LVMH Watches & Jewelry division, which also houses the mighty Bulgari.
In a brief statement announcing the news of Mr Arnault’s move, the company describes: