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.
As WatchPro reported in the summer of last year, the organisation headed by Bernard Arnault (sometimes the richest person in the world depending on how shares in Tesla, Microsoft and the luxury group are performing) is pressing his offspring into senior executive positions within the $350 billion operation, and a reshuffle was in the works.
Setting aside the all-conquering Louis Vuitton fashion house and money-printing Moet Hennessy beverages group, LVMH’s biggest brands are in jewellery, in particular Bulgari, and watches, headed by TAG Heuer, which generated revenue of around $730 million in 2022, according to Morgan Stanley estimates.
Hublot is similar in size, by turnover, with the fast-growing Zenith’s turnover estimated at just under $120 million.
Today, Frédéric Arnault, who became CEO of TAG Heuer in 2020, is appointed CEO of a newly created LVMH Watches operation in charge of Hublot, TAG Heuer and Zenith.
He will report to Stephane Bianchi, CEO of LVMH Watches & Jewelry Division, which also houses the mighty Bulgari.
Julien Tornare, CEO of Zenith since 2017, is appointed CEO of TAG Heuer.
Benoit de Clerck, who has spent two decades at rival Richemont with global roles at IWC and Panerai — after a brief spell as regional managing director for TAG Heuer Middle East — takes over in the top job at Zenith.
Stephane Bianchi, CEO of LVMH Watches & Jewelry Division, which includes TAG Heuer, Hublot, Zenith and Bulgari, says Frederic Arnault has earned his promotion to head the group’s watches operation.
“Frederic has done a tremendous job at TAG Heuer over the past six years,” says Mr Bianchi.
“His unique and disruptive vision for the watchmaking industry fed to a spectacular transformation for TAG Heuer, which recovered its credentials in record time as the luxury watch brand driven by high performance. I am extremely pleased to have Frederic join me within the LVMH Watches & Jewelry Division to oversee our three watch maisons and eager to see what his unique insights and vision will bring to fuel additional and sustainable growth for them,” he adds.
The restructure means Julien Tornare (TAG Heuer), Benoit de Clerck (Zenith) and Ricardo Guadalupe, CEO of Hublot, will report to Frederic Arnault.
His work in TAG to be honest has been a failure, the brand has failed to compete with higher brands like OMEGA and they’ve left their gap in the 2-3k range which has been taken over by brands like Longines. He should’ve looked into the history books, when TAG tried to do the same over a decade ago only to go back. I hope the new CEO that TAG names takes a 180 degree turn.
Still wondering why the stupidity? Louis Vuitton having their own watch brand called Louis Vuitton, but on their own historic, better, Heuer brand they have the name of the unconnected TAG company, who would also be a rival if they own any watch brands currently. Sounds as ridiculous as Rolex calling themselves Ford Rolex, or something.