LVMH Fashion Group: handover from Michael Burke to Sidney Toledano

The world's number one luxury goods group LVMH announced on Thursday that it would be making further management changes around Bernard Arnault, by switching two of the CEO's loyal associates Michael Burke and Sidney Toledano, according to a press release.

Michael Burke, 66, who has been an adviser to Bernard Arnault since 2023 after serving as CEO of Louis Vuitton for 10 years, is to become CEO of the LVMH Fashion Group, a division which brings together several LVMH brands including Céline, Givenchy, Loewe, Kenzo and more.

He succeeds Sidney Toledano, 72, who, after 20 years at the helm of Dior, has held the CEO position since 2018. Sidney Toledano has been appointed advisor to Bernard Arnault and is leaving the LVMH Executive Committee.

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These changes will be effective from February 1, it said. The CEO of the luxury conglomerate had previously announced the departure of Sidney Toledano, but the identity of his successor, although rumoured, had not yet been confirmed.

"In more than 30 years of close and fruitful collaboration," Sidney Toledano "will have helped to reveal and bring to the fore a number of creative talents who are today among the most recognised in the world," said Bernard Arnault, quoted in the press release.

"By offering me the opportunity to join the House of Dior and then to run it for 20 years, Bernard Arnault has given me the incredible opportunity to join an entrepreneurial, family and long-term adventure in which I have taken immense pleasure every day. I have been lucky enough to be surrounded by talented designers, exceptional craftsmen and incredibly dedicated teams. I would also like to extend my warmest thanks to Bernard Arnault for our work together. Finally, I am also delighted to see another seasoned fellow traveller succeed me at the head of the Fashion Group. I will never be far away, and I will continue to work alongside Bernard Arnault and to be involved in the IFM and the Executive Committee of the Fédération de la Haute Couture et de la Mode to carry the colours of French design," commented Sidney Toledano in the Group's press release.

Bernard Arnault also said he was "delighted" to have Michael Burke back at the helm of the LVMH Fashion Group after he "led Louis Vuitton to new heights". When Michael Burke stepped down in 2023 as CEO of Louis Vuitton, a position he had held from 2012, the brand had passed the €20 billion mark in annual sales. "He has been by my side since before the creation of LVMH, and has been and remains a key player in the group's success, particularly through the accuracy and finesse of his work at the helm of Fendi, Bulgari and Louis Vuitton," emphasised Bernard Arnault.

Michael Burke is taking over an entity that oversees the activities of houses such as Celine, Givenchy, Loewe, Pucci, Kenzo, Marc Jacobs and Patou.

"Like Bernard Arnault and Sidney, whom I am succeeding, I am an apostle of the long term, of craftsmanship, creativity and excellence. These are all ingredients that will form part of the recipe that I intend to deploy with the teams of these houses to further increase their desirability and break new records," explains the CEO in the group's press release. Sidney, with whom I have shared more than 30 years of friendship, adventure and complicity, has done a fantastic job at the head of these houses, encouraging their creativity and giving them the benefit of his unique experience as a seasoned manager. I am fully committed to this ambition to bring out the magic of these extraordinary houses, rich in their power to innovate, their history and their expertise."

In early January, the Group announced the appointment of Frédéric Arnault, son of Bernard Arnault, as head of a new Watches division. At the end of November, his older brother, Antoine Arnault, announced that he was stepping down as CEO of Berluti, of which he remains chairman.

The group will present its annual results for 2023 on January 25.

With AFP