In a deal valued at just under sixteen billion dollars, LVMH has acquired fine jewelry brand Tiffany. Now, according to Business of Fashion, the luxury company has already seen a reshuffling of roles thanks to its new acquirer. Tiffany’s new executive team will focus on making the brand even more exclusive and lavish to fit with the rest of LVMH’s labels.
The $15.8 billion deal joins a string of major company sales during the pandemic. In late 2020, we saw the $2.1 billion sale of Supreme, as well as Moncler buying outerwear rival Stone Island. The pandemic’s immense change in everyday life has consumers wanting a different kind of luxury, and brands have to adapt.
Renaissance — BOF reports that Louis Vuitton’s vice president of global commercial activities, Anthony Ledru, has been named Tiffany’s new chief executive, replacing Alessandro Bogliolo, who will depart later in January. The move makes sense, seeing as Ledru holds significant experience in luxury markets. Prior to running global commerce at LV, Ledru led global sales at Harry Winston and served two years as vice president of the North American market at Tiffany. He also spent much of his early career at Cartier, where he managed the brands’ U.S. retail network.
Ledru’s extensive experience shows that LVMH is hoping to boost Tiffany to a higher class. As BOF states, he’s intimately familiar with the luxury business, and would be capable of modernizing Tiffany to resonate with the next generation of luxury customers. Ledru will also be joined by Louis Vuitton chief Michael Burke, who LVMH appointed chairman of the Tiffany Board, and Alexandre Arnault, who will oversee management at the brand. That last name seems oddly familiar…
Family jewels — The Tiffany appointment is an additional position for 28-year-old Arnault, who is also the CEO of LVMH-owned suitcase brand, Rimowa — and son of LVMH Chairman Bernard Arnault. Now, before your cry nepotism, BOF claims that the young Arnault actually has a track record of reviving tired brands.
Arnault took the helm of Rimowa after the luxury group acquired a $774 million majority stake in 2016, said BOF, and successfully turned the fatigued German luggage label into one of the most desired status symbols on the market. Through cool collaborations with Virgil Abloh and Supreme, Arnault entirely revamped the once-dreary company. It seems LVMH is hoping he’ll do the same at Tiffany.
Both Ledru and Arnault have the ability to tap into LVMH and other luxury resources, which could help take Tiffany to a new level. Of course, we might consider that Ledru’s contacts come from years of experience, while Arnault might have to lean on more familiar faces. It’s important to note that in the past, Bernard Arnault has had a bit of a bromance with Donald Trump, and like his bro, named his own children for many leadership and executive roles within the LVMH company. Bernard appointed his son Antoine as CEO of Berluti, and daughter Delphine as executive vice president of Louis Vuitton. It’s a real family business.