CHRISTIAN Dior named Jonathan Anderson its next womenswear designer as owner LVMH seeks to revive growth at the struggling brand.
Anderson will now be creative director for the women’s lines as well as haute couture collections, after being given direction of Dior’s menswear line in April, the label said in a statement Monday. The native of Northern Ireland will present his first menswear collection on June 27.
“At last, Dior is opening a new chapter – which seems appropriate, given the recent headwinds,” said Luca Solca, a luxury analyst at Bernstein.
LVMH Moët Hennessy Louis Vuitton SE’s key fashion and leather goods unit, which includes Dior and Louis Vuitton, saw organic sales fall 5% in the first quarter. While the company doesn’t provide financial performance by brands, HSBC estimates that Christian Dior Couture likely had sales of €8.71 billion ($9.95 billion) last year and earnings before interest and taxes of €2.74 billion.
After years of double-digit growth rates, with blockbuster products such as the Dior Book tote bag that can sell for €2,750, Dior has been underperforming the larger Louis Vuitton in recent quarters as its collections fail to resonate with consumers. The wider luxury market has suffered as well, hurt by weak demand in China and an escalating trade war.
Dior likely started seeing a drop in sales in the first quarter of 2024, according to HSBC analyst Erwan Rambourg. The unit it’s part of turned negative in the third quarter of last year. The rebound in creativity at Dior will likely have a positive impact on revenue starting next year, according to a May 27 note from the bank.
LVMH Chief Executive Officer Bernard Arnault’s eldest child, Delphine, 50, has been CEO of Dior for more than two years.
Anderson was creative director of Loewe, an LVMH brand known for its leather bags, for more than a decade until March. The label experienced “exceptional growth” during Anderson’s tenure, the company said when announcing his departure. Bernard Arnault described Anderson as “one of the greatest creative talents of his generation” in Monday’s statement.
Maria Grazia Chiuri stepped down as Dior’s womenswear designer last week after nine years in the role, while the label’s former menswear designer Kim Jones left in January.
LVMH shares fell as much as 2.3% in early Paris trading, and have declined 26% this year.
Reviving Dior is crucial because it’s LVMH’s second-biggest profit contributor after Louis Vuitton. The group has been putting out signals that sales in the current quarter have been weak. Last week, LVMH deputy CEO Stephane Bianchi warned that Chinese shoppers have been curtailing travel and spending during trips in the current quarter. –BLOOMBERG
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