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Louis Vuitton generates more than half of LVMH’s profits and is the world’s No. 1 luxury brand by revenue. Under the bold new command of Pietro Beccari, who drove impressive growth at Dior, and before that at Fendi, expectations are that change is on the cards. The Italian luxury veteran took over the executive reins of the French luxury powerhouse a month-and-a-half ago.

Since the appointment of singer Pharrell Williams as Louis Vuitton’s new menswear designer last month, all eyes are now on Nicolas Ghesquière. The French designer has been the creative director at Louis Vuitton’s womenswear for nearly a decade. Is it time for him to move on? Miss Tweed has the details.

Beccari is regarded as a man who likes to move fast and is quite hands-on when it comes to managing operations. He has a reputation for driving his teams to beat expectations. Weakest members fall by the wayside and leave. Only the strongest survive his energetic style of management. However, industry sources say Beccari is a wonderful and inspiring boss. He may get his staff to work hard, but he also takes good care of them. Several of his closest associates wished to follow him at Louis Vuitton but such moves have been vetoed by LVMH CEO and controlling shareholder Bernard Arnault.

“No transfers allowed,” is what senior Dior managers were told, one source close to LVMH explained to Miss Tweed on condition of anonymity. Whether they like it or not, they will have to work for Bernard Arnault’s daughter Delphine, who became CEO of Christian Dior Couture in February. Delphine Arnault is known for having a strong eye for products, but she does not have the charisma or the warmth of Beccari, insiders say. Arnault is wise to insist that the teams Beccari built and trained stay where they are. Delphine Arnault will need their help.

So what will happen toNicolas Ghesquière? There has long been speculation that the French designer could leave this year and be replaced by Jonathan Anderson, who has been doing wonders at LVMH’s Loewe. Such talk has been around since 2016, as Reuters reported. “Anderson has breathed new life intoLoewe, he has really made the brand more modern, intellectual and fresh,” a Paris-based head-hunter who declined to be identified told Miss Tweed. Anderson also helped Loewe build closer ties with the art world. The 38-year-old British designer also works for his own brand, JW Anderson, which is backed by LVMH. He is one of a few promising young designers LVMH has taken under its wing and invested in, gambling that they could design for one of the group’s bigger brands one day.

One former senior Louis Vuitton executive put it more bluntly: “If I was Beccari, I would hire Jonathan Anderson immediately as he would be great for the brand. He would also sit better with Pharell. But I have no concrete information as to whether this is on the cards or not.”

Several sources at LVMH said the same thing. It is not clear whether Anderson could definitely replace Ghesquière. However, such a move could take place in the near-to-medium term.

Anderson has been at Loewe for 10 years and has done a superb job driving the brand’s exponential growth. Loewe’s annual revenues are now estimated to be above €1 billion. The brand’s wholesale revenues have doubled in the past three-to-four years, one manager who works at Loewe said on condition of anonymity.

If Anderson were to leave to join Louis Vuitton, it would be catastrophic for Loewe. However, the stakes are higher for Louis Vuitton. There is more to be won at Louis Vuitton, which makes 22 billion euros in annual sales, than at Loewe, which generates a fraction of that amount. Delphine Arnault is said to be fond of Anderson but she is also the person who hired Ghesquière for Louis Vuitton. Before joining Louis Vuitton, Ghesquière did a sterling job of revamping Kering’s Balenciaga brand. Now that Delphine has left Louis Vuitton, where she was vice-president in charge of products, she is no longer in a position to protect Ghesquière. However, she still has a lot of influence over creative direction at Louis Vuitton.

A few years ago, there was recurring speculation that Ghesquière might launch his own brand with LVMH’s backing. “There was a lot of talk about this,” said one French designer who used to work closely with Ghesquière. “He hesitated a lot, and in the end, it never happened.” Like many industry insiders, the designer expects Beccari to appoint a new designer in the next six months to a year. However, if Anderson is chosen, it would not be an easy move for him, the designer said, even though he has made no secret of the fact that it is his dream job. “You need to have broad shoulders. Louis Vuitton is a huge machine.

Another source close to LVMH said: “Anderson would have much less freedom at Louis Vuitton than he has at Loewe.” Anderson is strong not only in ready-to-wear, but also in leather goods, which generate much higher margins than the former. He has created for Loewe many best-sellers including a little elephant-shaped tote – which has been copied by many rivals – and the Puzzle bag with distinctive geometric lines and cuboid shape. Anderson has also been responsible for several collaborations that have helped keep Loewe in the news. A recent high-profile partnership was with the Japanese animated film Howl’s moving castle. Anderson created bags and ready-to-wear inspired by the film’s characters – just like he does when his own brand JW Anderson partners with other Japanese cartoons. Supported by gigantic installations at major retailers and boutiques around the world, Loewe’s collaboration with Howl’s Moving Castle was a hit, industry sources said.

Anderson is an imaginative designer who would certainly bring a light and human touch to Louis Vuitton. Ghesquière’s world is much more serious and urban, inspired by science fiction. The French designer takes his inspiration from Japanese Manga women who have elongated silhouettes. His latest fashion show earlier this month did not get particularly strong reviews. In fact, sources close to LVMH say his clothes do not sell well. “Ghesquière is futuristic and passionate about science fiction but it’s clear that sci-fi does not sell clothes,” one former senior Louis Vuitton manager admitted.

That’s OK, investors would say, because women’s ready-to-wear represents less than 5 percent of Louis Vuitton’s total sales. However, Ghesquière’s spectacular shows and his clothes, which consistently try out new fabrics and feature inventive curves and shapes, help keep the brand in the news.

Anderson has long been regarded as a strong candidate to succeed Ghesquière. When Ghesquière found this out about five or six years ago, he stopped inviting Anderson to his shows, according to someone who worked for Ghesquière. “It’s not because Anderson is doing a great job at Loewe that he would necessarily work for Louis Vuitton,” a source close to LVMH said. “And if Nicolas was not good, he would not have stayed so long.” The source confirmed that there was no immediate plan for Ghesquière to leave.

Under Ghesquière, Louis Vuitton’s sales have more than doubled in the past 10 years and the brand has gone from strength to strength. One risk now is ubiquity, analysts say. Louis Vuitton has been opening more and more boutiques in recent years. That means that if you are in the shopping mecca of a major city, you are bound to pass at least one or several Louis Vuitton boutiques. Critics say it is time that Louis Vuitton introduced a new concept for its boutiques which are starting to look dated. Beccari will have to take care of that.

It is also hoped that Beccari will help Louis Vuitton renew its historical ties with the world of travel. Under his predecessor Michael Burke, the brand ended its sponsorship of the America’s Cup sailing competition and he was not very enthusiastic about Louis Vuitton’s publishing activities. These were led by Julien Guerrier, who put an end to his life in January, as Miss Tweed reported. Guerrier, who had a personal connection to Louis Vuitton having started his professional life there as an intern, left last summer because he felt under-appreciated by the brand’s executives, several people close to him said. Guerrier jumped ship to help rival Chanel develop its own publishing venture 7L. Louis Vuitton did not issue a press statement thanking Guerrier for his work. It confined itself to providing a few words in response to requests from some journalists.

Photo and art books, together with Louis Vuitton’s famous city guides, feed the brand’s soft power. They give Louis Vuitton a human face. They support Bernard Arnault’s theory that luxury is about culture. Guerrier was replaced by Axelle Thomas who was “content and creative manager” at LVMH and is relatively unknown in Paris’ uptight literary world. Julien Guerrier had become a superstar and managed to build Louis Vuitton into a respected publishing house, even though the brand’s communications department was not very supportive of his initiatives and generally made life difficult for him, several industry sources said. It is not clear what will happen to Louis Vuitton’s publishing activities from now on.

When Beccari became CEO at Dior in 2018, the brand’s women’s creative director, Maria Grazia Chiuri, had been in place for two years. Even though Beccari and Chiuri famously did not get along, Chiuri stayed. She is one of only a few designers working for a major European luxury brand to have a contract with an unspecified end date. Most designers have three- or five-year contracts that can be ended or renewed. Ghesquière has already renewed his contract at Louis Vuitton several times. Hence, there is no certainty that Ghesquière may leave soon, industry sources say, even though it is highly expected. “The market needs to first digest Pharrell,” the former senior Louis Vuitton executive said. “Too much good news kills the good news.It may not be now, but it could be announced in early 2024. I can't believe that Pietro doesn't have that in mind.”

One telling detail: No one from the Arnault family was present at the Loewe show during Paris Fashion Week. Only Sidney Toledano, head of LVMH’s Fashion Group, which includes Loewe, attended.

There is talk within LVMH’s rank and file that Toledano could leave his post by the summer. “Of course, he will stay on as adviser, but he is going to be replaced by someone who is quite strong and aggressive,” the LVMH source said, based on information from a person who works for the group’s human resources department. LVMH declined to comment. Toledano, now 71, is a member of LVMH’s executive committee and is one of Arnault’s most trusted lieutenants, having led Dior for more than 20 years.

If the Celine and Loewe brands are growing nicely, LVMH’s Fashion Group includes others that are not doing so well, such as Kenzo and Givenchy. Led by the Japanese designer Nigo, its creative director, Kenzo has taken a sharp streetwear turn that customers have not yet been embracing and supporting, industry sources say. Meanwhile, as Miss Tweed reported last year, Givenchy is struggling under its creative director Matthew Williams. He could be replaced by Paco Rabanne’s Julien Dossena this year. Ghesquière may not leave immediately butis likely to do so in the near future, and other important creative and management changes at LVMH are on the cards. Stay tuned.