A chance to help run the iconic American jeweler Tiffany & Co. has catapulted Alexandre Arnault into the luxury world\u2019s top echelons.<\/p>\n
The 28-year-old son of French billionaire Bernard Arnault was thrust into the limelight on Thursday with a key role at Tiffany, after LVMH completed its $16 billion on-again-off-again takeover — the luxury industry\u2019s biggest. Alexandre was named executive vice president for products and communication, and will help new Chief Executive Officer Anthony Ledru oversee the company.<\/p>\n
For the third of LVMH founder Arnault\u2019s five children, the move marks a leap from managing a small suitcase maker for the group to work at one of the world\u2019s best-known jewelry brands with pre-pandemic annual revenue of about $4.4 billion. It also makes him a more serious contender to some day run the luxury empire built by his 71-year-old father.<\/p>\n
\u201cBernard Arnault is building a fair process between the Arnault siblings by testing them,\u201d said Philippe Pele-Clamour, adjunct professor at business school HEC Paris. \u201cThat will allow them to understand if they can lead such a group.\u201d<\/p>\n
The first son of Arnault\u2019s second wife, Alexandre is in the line of succession to one of the world\u2019s biggest fortunes. His father has a net worth of about $114 billion through his holdings in LVMH and Carrefour SA, making him Europe\u2019s richest and the world\u2019s fourth-wealthiest person, according to the Bloomberg Billionaires Index.<\/p>\n
Alexandre\u2019s ascent provides fresh fodder for the chattering classes in France, which closely track the family for signs of who Arnault\u2019s anointed successor might be. Although it may be a long while before Arnault — who remains hands on in the business — is ready to retire, the guessing game continues. Four of the five Arnault children are currently involved in the company, Europe\u2019s second-largest by market value after Nestle SA.<\/p>\n
While Jean is still a student, Alexandre\u2019s younger brother Frederic manages watchmaker Tag Heuer. Delphine, Alexandre\u2019s half-sister, is executive vice president of Louis Vuitton, while half-brother Antoine heads shoemaker Berluti and oversees image, communications and the environment for LVMH.<\/p>\n
An engineer by training — graduating from France\u2019s Ecole Telecom ParisTech and Ecole Polytechnique — Alexandre has since 2017 led German luggage maker Rimowa, acquired by LVMH the year before. The executive, who will be based in New York for his new role, began his career in the U.S., first at McKinsey & Company and then at KKR. He joined LVMH and Groupe Arnault, focusing on digital innovation and honing his management skills at Fendi before moving to Rimowa.<\/p>\n
The suitcase maker is a small part of LVMH\u2019s fashion and leather goods unit, which represented more than 40% of the conglomerate\u2019s sales of 53.7 billion euros ($65 billion) in 2019 — mostly driven by Louis Vuitton and Christian Dior brands. A year ago, releasing annual results, Bernard Arnault said Rimowa had achieved \u201cremarkable growth since we acquired it.\u201d<\/p>\n
At Tiffany, Alexandre and Ledru will have their hands full as the luxury industry contends with the second year of a pandemic that\u2019s forced store closures across the world and shrunk discretionary spending. Still, their collaboration will help take Alexandre up the learning curve, said Luca Solca, an analyst at Bernstein.<\/p>\n
\u201cThe idea of pairing experienced managers with up-and-coming family members, and possible future leaders, creates a fruitful environment,\u201d he said, adding that it can \u201cavoid mistakes, and prove one\u2019s true value.\u201d<\/p>\n
The Tiffany appointment caps an eventful month for Alexandre, who with Antoine is the family\u2019s highest-profile member, with an active Instagram account of posts of everything from Rimowa\u2019s products and family photos to meetings with billionaires Jeff Bezos and Warren Buffett. A few weeks ago, he used the account to announce his engagement to his girlfriend, saying \u201cengaged to my soulmate and my best friend,\u201d with the emoji of a ring.<\/p>\n