LVMH's Dior Recruits Miu Miu CEO as Managing Director

FILE PHOTO: A logo of fashion house Dior is seen outside a shop in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo
FILE PHOTO: A logo of fashion house Dior is seen outside a shop in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo
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LVMH's Dior Recruits Miu Miu CEO as Managing Director

FILE PHOTO: A logo of fashion house Dior is seen outside a shop in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo
FILE PHOTO: A logo of fashion house Dior is seen outside a shop in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo

Christian Dior Couture has recruited Benedetta Petruzzo, the CEO of Prada's fast growing Miu Miu label, as its managing director, the LVMH-owned brand said on Tuesday.
The move comes over a year and a half after Delphine Arnault, the eldest child of LVMH boss Bernard Arnault, took the helm at Dior and as it grapples with the fallout of a judicial probe in Italy into working conditions at subcontractors.
Petruzzo will be responsible for product teams at Dior, including supply chain teams, reporting to Delphine Arnault, LVMH said on LinkedIn. Her recruitment, effective Oct. 15, was first reported by trade publication WWD, according to Reuters.
Petruzzo replaces Charles Delapalme, a rising star at LVMH who has also held prominent positions at the group's Fendi and Louis Vuitton labels. "Important new responsibilities" for Delapalme will be announced at a later date, LVMH said.
Petruzzo, a former Bain consultant, worked at Kering's eyewear business for five years before joining Prada as general manager of Miu Miu in February 2020.
Prada has outshone luxury rivals during the recent downturn, including in China, where shoppers are pulling back on high end purchases amid a property crisis. It has seen soaring growth at Miu Miu, whose creative director is Miuccia Prada.
LVMH in July pledged to speed up its supply chain strategy and strengthen audits and controls while increasing control over production at Dior, LVMH's second largest label after Louis Vuitton, following the probe in Italy, made public in June.
That investigation prompted Italy's competition authority to look into whether fashion labels Armani and Dior had misled consumers, while Europe's top asset manager Amundi and other investors asked LVMH to take stronger steps to monitor its suppliers' treatment of workers.
All five of Bernard Arnault's children hold important management positions in the sprawling luxury empire.



Birkin Bag Maker Hermes End of Year Sales Jump

A Mimosa Matte Mississippiensis Alligator Birkin handbag by Hermes is pictured during an auction preview at Sotheby's in Geneva, Switzerland, November 7, 2024. (Reuters)
A Mimosa Matte Mississippiensis Alligator Birkin handbag by Hermes is pictured during an auction preview at Sotheby's in Geneva, Switzerland, November 7, 2024. (Reuters)
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Birkin Bag Maker Hermes End of Year Sales Jump

A Mimosa Matte Mississippiensis Alligator Birkin handbag by Hermes is pictured during an auction preview at Sotheby's in Geneva, Switzerland, November 7, 2024. (Reuters)
A Mimosa Matte Mississippiensis Alligator Birkin handbag by Hermes is pictured during an auction preview at Sotheby's in Geneva, Switzerland, November 7, 2024. (Reuters)

French luxury group Hermes reported an 18% rise in fourth quarter sales on Friday, showing robust appetite from wealthy shoppers for the most expensive luxury items like its Birkin bags, which cost upwards of $10,000.

Hermes continues to outshine rivals like LVMH and Kering-owned Gucci thanks to its wealthier customers as the industry suffers its slowest sales in years. Global luxury sales fell around 2% last year, hurt by a property crisis crimping spending in China and inflation-weary shoppers elsewhere.

"We are celebrating an excellent year, in a tougher environment," Axel Dumas, executive chairman, told journalists on a call.

Sales for the fourth quarter came to 3.96 billion euros ($4.14 billion), an 18% rise at constant exchange rates, accelerating in the important end of year period, with the fastest growth in the Americas and Japan.

The growth beat analyst expectations for a 10% rise, according to a Visible Alpha consensus cited by UBS.

The Hermes leather goods and saddlery division, which accounts for nearly half of group revenue, grew the fastest, up 21.5%. Analysts had expected a rise of 13%.

The double-digit growth at Hermes contrasts with LVMH's 1% rise over the last three months of the year.

Hermes also reported 9% growth in sales in the Asia region excluding Japan, the label's biggest market, despite the downturn in traffic in Greater China seen since the end of the first quarter of 2024.

Dumas added, however, that it was "too early to see an inflection" in the industry, despite some positive signs.

Hermes is known for its tight grip on production, sticking to an annual increase of around 6-7% a year, with order backlogs cushioning it from falling demand while holding up the label's exclusive aura.

Sales in the Americas region clocked 22.3% growth, matching growth in Japan.

Asked about the impact from potential US tariffs on European goods, Dumas said the company would not adjust its production.

"We are attached to keeping our production where it is," he said, citing France for leather goods, Switzerland for watches and Italy for shoes.

"We'll adapt to tariffs, and raise prices accordingly," he added.

The company is raising prices 6-7% this year to reflect higher production costs and exchange rates, Dumas added.