This week, LVMH founder and CEO Bernard Arnault reacted sharply to a six-part series published by the French newspaper Le Monde, which detailed tension within his family. Although his response post on X (formerly Twitter) was quite emotional—with the billionaire joking about comparisons between his family and "France's last royal dynasty" and mentioning an unwritten ban on guests wearing ties from rival brand Hermès—this is clearly not the kind of communication investors are looking for.

By trying to dodge the answer, Europe’s richest man is only fueling the central question: which of his five children will take over the hundreds-of-billions-dollar luxury empire, writes Bloomberg.

Seven Years of Waiting? Investors Aren't Willing to Wait

At the annual shareholders' meeting in April, all five of Arnault’s children gave brief presentations for the first time. However, when asked by a shareholder about succession, the 77-year-old patriarch stated that since investors had extended his mandate as CEO until age 85, he would only address the transfer of power in "seven or eight years."

But the landscape has shifted: rumors of family friction have entered the public domain, and major investors are already voicing concern. Terry Smith, head of Fundsmith LLP, recently announced the sale of his stake in LVMH, citing the lack of clarity surrounding succession as one of the key risks.

LVMH holds a unique advantage: all of Bernard's children have been groomed for business management since childhood and hold pivotal positions within the group:

• Delphine (51) — CEO of Christian Dior Couture (the group's second-largest brand);

• Antoine (49) — Head of Image and Environment at LVMH (who spearheaded the Paris Olympics sponsorship);

• Alexandre (34) — Executive Vice President of the Wine and Spirits division;

• Frédéric (31) — CEO of the "quiet luxury" brand Loro Piana;

• Jean (27) — Director of Louis Vuitton watches.

Succession Scenarios: From a "Heirs' Committee" to an Outside CEO

Experts are weighing several potential outcomes: appointing one of the older children, forming a family governing council, or bringing in a temporary outside CEO.

If Arnault decides to pass the reins to one of his younger sons, the group might require a professional non-family executive during the transition period—similar to the Prada model.

However, this strategy needs to be communicated to investors now. The market fears a replay of the chaos at EssilorLuxottica (owner of Ray-Ban), where family disputes frozen restructuring for years following the death of founder Leonardo Del Vecchio.

The Market Demands Transparency

LVMH's financial results leave little room for complacency. Although second-quarter sales in the flagship Fashion & Leather Goods division grew for the first time in two years (driven by demand in the US and Japan), the rebound fell short of analysts' expectations. Demand in China remains persistently soft, and the company's stock is trading near a five-year low.

Bernard Arnault likes to reiterate that the luxury industry thinks in generations, not quarters. But to prove the validity of this philosophy, the head of LVMH must present a clear succession plan—before family ambitions undermine the stability of his empire.