‘Quality is key’: Delphine Arnault opens a new chapter at LVMH’s Dior
Jo Ellison,
Adrienne Klasa
Dior chief executive Delphine Arnault has said she is opening “a new chapter” at LVMH’s second biggest brand, emphasising that “quality is key” as new creative director Jonathan Anderson makes his runway debut amid a luxury downturn.
The
appointment of the Northern Ireland-born designer last month made him the first designer since the brand’s founder, Christian Dior, to oversee both the men’s and women’s collections.
He is assuming creative control of a brand with an estimated €9.5bn in revenues at a time of deteriorating luxury demand, especially in Asia.
The choice of Anderson, 40, is the biggest bet by Arnault — eldest child and only daughter of LVMH chair and chief executive Bernard Arnault — since she took the helm in 2023 from former star executive Pietro Beccari, who moved to Louis Vuitton.
Anderson, who grew up in the small town of Magherafelt during the Troubles, will kick off Dior’s new era with a menswear show this Friday.
“Dior is a fascinating brand,” Arnault told the Financial Times from her office in Paris. “I worked at Dior from 2001 until 2013, so it’s the brand that I know. The growth was spectacular but I think my role as the CEO is to know when it’s time to change. And now it’s a new chapter.”
“I’m interested to see what is going to come up . . . in a way that’s very elevated, very qualitative,” said Arnault of her hopes for Anderson’s new designs. “The next five years is going to be all about quality in the materials and the manufacturing. Quality is key.”
Before the current downturn Dior had been one of the luxury industry’s star performers. Revenues quadrupled to €9.5 billion between 2017 and 2023, according to estimates from HSBC, helped by extensive price rises.
But Arnault’s tenure has thus far coincided with a sharp slowdown in the luxury market, especially in China, and consumer pushback against price inflation. Already fragile consumer confidence could be damaged further by the escalating conflict in the Middle East.
Meanwhile, a scandal involving labour practices at subcontractors in Italy — Dior agreed to
settle a probelast month “without establishing any infringement” — has tarnished the brand’s image.
“The focus [for Arnault] is on reinvigorating sales growth in the aftermath of a period of booming sales,” said Zuzanna Pusz, European luxury goods analyst at UBS. “But also focusing on re-establishing the value for money relationship in the eyes of the consumer, especially for leather goods.”
In April, LVMH’s chief financial officer Cécile Cabanis told analysts that Dior’s first quarter organic sales growth was “slightly below” the 5 per cent drop seen across its fashion and leather goods division.
The appointment of Anderson is part of Dior’s attempt to find a new creative impetus after nine years under outgoing designer Maria Grazia Chiuri.
Anderson, formerly creative director of Loewe, left the Spanish brand last year with a catalogue of hits to his name, including its hammock and puzzle bags, as well as a series of critically acclaimed runway collections.
Loewe’s revenues rose from about €230mn to between €1.5 billion and €2 billion over the course of Anderson’s 11-year stint, according to Bernstein analyst Luca Solca’s estimates.
At Dior, however, Anderson is overseeing a far bigger creative operation — especially in his combined role. Arnault does not expect the brand’s new creative head to have an immediate impact on sales.
“I’m really excited about what’s next but I think it takes a couple of seasons to understand the vision of a designer,” said Arnault, adding that Anderson was a choice which reflected “long-term thinking”.
Anderson’s appointment coincides with a string of executive changes at Dior, including the appointment of former Louis Vuitton executive Pierre-Emmanuel Angeloglou as deputy chief executive.
Following the subcontractor scandal in Italy, Dior has created a new industrial division to produce more designs in-house, overseen by Giorgio Striano, who was hired from EssilorLuxottica. Nicolas Carré, another former Louis Vuitton executive, joined Dior as industrial director for leather goods, shoes and fashion jewellery.
“It’s about finding the best talents and making them work together,” said Arnault, who worked with many of the team in her previous role at Vuitton, from 2013 to 2022. “I think we need to have the best teams in terms of creatives . . . but also in terms of the management of the company.”
Arnault didn’t respond to questions about the impact of tariffs on the business but she reaffirmed that the US market — one of luxury’s largest by sales — remains key.
Dior plans to open a new Manhattan flagship store in July, and another store on LA’s Rodeo Drive in October. But the turbulence in the US under President Donald Trump — whose inauguration was attended by Delphine, Alexandre and Bernard Arnault — has blunted hopes that US shoppers would lead a luxury industry recovery this year.
Pusz at UBS said that while the current environment was difficult for luxury Anderson “seems well suited” for the challenge, citing his record of innovation, delivering a “powerful brand message”, as well as recruiting and managing teams of talented designers.
Anderson, who is also creative director and majority owner of an eponymous brand, JW Anderson, will now deliver up to 18 collections every year. But Arnault seemed unfazed by the additional pressures on him, or the risk that the Northern Irishman could suffer creative burnout.
“He’s 40, I think he’s the most talented designer of his generation,” she said. “I think he can do a lot of amazing things.”
