LVMH billionaire Bernard Arnault appoints 29-year-old son as head of watch division

Frédéric Arnault is the second youngest of Bernard Arnault's five children. Photo: Denis Balibuz/Reuters

Billionaire owner of a luxury goods giant. LVMH has appointed his 29-year-old son to head the group's watch division.

Frédéric Arnault, the second youngest of Bernard Arnault's five children, will take on an expanded role in the newly created position of CEO of LVMH Watches.

He will oversee Swiss watch brands TAG Heuer, Hublot and Zenith, which reportedly have a combined turnover of around CHF 1.6 billion (£1.5 billion).

Frédéric Arnault will hand over his former role the position of head of TAG Heuer to Julien Tornare, who has served as CEO of Zenith since 2017.

The move underscores LVMH's renewed focus on watches in a fiercely competitive luxury market.

The French conglomerate, which also owns brands such as Louis Vuitton and Christian Dior, first entered the watch market by buying TAG Heuer and Zenith in 1999, when Frédéric Arnault was just five years old.

The watch brand sells only a few dozen diamonds. -studded watches every year, with buyers waiting up to a year to get one.

Rumors about Frederic's future at LVMH are so hot that his presence at a Bulgari event last summer sparked rumors in Switzerland. the press was informed that he was ready to take over the management of the jewelry brand.

Other projects led by Frédéric Arnault include partnerships with Porsche and Formula 1 team Oracle Red Bull, as well as the production of the short film «Chasing Carrera» starring Ryan Gosling.

Frederic Arnault said that the transition into the high-end market has paid off for TAG Heuer. The brand has reduced annual production but increased its average selling price from around CHF 1,800 in 2017 to just over CHF 3,000 last year.

In an interview with the Financial Times, Bernard's son Arnault added: «Since I became CEO in June 2020, sales have increased by 50%, and 2023 will be another record year.»

His promotion, will likely fuel speculation. about succession planning in the LVMH empire. Bernard Arnault, who is 74 and one of the world's richest men, recently raised his mandatory retirement age to 80.

Frederic's siblings also hold key positions in the group. His younger brother Jean heads the watch department of Louis Vuitton, and his older brother Alexander heads Tiffany. Antoine, Bernard's eldest son, heads the family holding company, and only daughter Delphine is chief executive of Dior.

Frédéric said he would spend more time with his father in Paris and «work more closely with him.» on strategic projects.”

But he added: “I’m here because I love what I do. I love brands. I enjoy the project and the journey. Continuity is not a topic we think about today. It will come in due time. And he is a master at timing.”