Business News: More C-Suite Musical Chairs As LVMH Shuffles TAG Heuer, Hublot, And Bulgari CEOs
Frédéric Arnault, CEO of LVMH Watches, has announced a reshuffle within the division. Effective September 1, 2024, Julian Tornare will leave his post as CEO at TAG Heuer to become the CEO of Hublot. Antoine Pin, the general manager of Bulgari watches, will take Tornare’s place.
After a 20-year career with the brand dating back to pre-LVMH acquisition, current CEO of Hublot Ricardo Guadalupe has now been appointed Honorary President of Hublot. This change comes amidst a tornado of watch industry C-Suite rearranging, which started with Cyrille Vigneron’s departure from Cartier a mere two weeks ago.
Why the sudden move for Tornare? Previously CEO of Zenith between 2017 and 2023, he revamped the brand’s catalog, dialing in on the El Primero and shifting focus almost solely to already successful products in lieu of underperformers. Tornare has (albeit during a very brief stint) done much of the same with TAG Heuer, focusing on successful commercial models like the Carerra and Aquaracer. Could this lead us to believe that Tornare is the man LVMH puts in charge when it sees an opportunity for growth on the mass consumer level?
According to Morgan Stanley’s 2023 report, sales at Hublot dropped 10% in 2023, with revenue coming in at 670 million CHF, compared to 744 million CHF in 2022. Outside of statistics, there has been a clear loss of market share in terms of influence. While Guadalupe has focused his efforts in recent years on splashy collaborations and ambassadorships, Tornare’s takeover signals a pushback to a more traditional offering. It certainly signals LVMH’s desire for a large rethink at Hubot via a new CEO with a (hopefully) fresh vision. Guadalupe was a product of the Biver era of the brand.
Perhaps a strange time for change at TAG Heuer, given how well the brand is performing and the recent rumors of a Formula 1 sponsorship takeover from Rolex? It certainly seems like a Hublot-centric reshuffle amidst a downturn in the overall Swiss watch market. It’s important to remember that while the market is softening and consumer behavior begins to switch, brands either react or are left behind. In our post-Covid-frenzy watch world of 2024, LVMH is simply reacting.
Hublot is part of the LVMH group. Although LVMH Luxury Ventures is a minority investor in HODINKEE, we maintain complete editorial independence.
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