Cheval Blanc Taps New Operations Chief as LVMH Navigates a Bruising Luxury Downturn

Vincent Billiard becomes Cheval Blanc COO as LVMH shares trade near a 52-week low and Songmont enters leather goods.

Vincent Billiard takes over as Chief Operating Officer of Cheval Blanc on Monday, stepping into the top operational role at LVMH's hotel arm. He will oversee the hospitality business along with the teams responsible for operations and quality, sales and distribution, and commercial activity. The appointment also brings him onto the executive committee of LVMH Hotel Management.

The leadership change lands at a delicate moment for the French luxury giant. LVMH shares finished Friday at EUR 381.20, down 40 percent since the start of the year and hovering just 1.0 percent above their 52-week low of EUR 377.35.

Fresh Competition in Leather Goods

Beyond the personnel shuffle, the world's largest luxury group is contending with shifting market conditions. European equities came under pressure at the start of the fourth quarter as rising bond yields and elevated crude oil prices weighed on sentiment, dragging LVMH's stock along with the broader market, according to media reports.

At the same time, a new international challenger has stepped forward. As reported by French daily Le Monde, Chinese handbag label Songmont used Paris Fashion Week to stage its debut, taking on LVMH with a global expansion push in the leather goods segment.

Other headwinds are pressing on the sector as a whole. A Reuters report points to the Middle East conflict as a drag on luxury manufacturers, while the broader market environment for high-end fashion remains difficult. Analysts at RBC Capital Markets downgraded the stock to "Sector Perform" more than a month ago, citing weaker demand and macroeconomic obstacles.

Marks & Spencer to Carry Sephora

LVMH is responding to the tougher landscape with targeted moves on distribution and supply chains. Reuters reported that British retailer Marks & Spencer agreed on Tuesday to a partnership with Sephora, the LVMH-owned beauty chain. Under the deal, Sephora products will be sold both in M&S stores and on the British retailer's website, giving the cosmetics division a way to widen its UK footprint through an existing store network.

External growth options are also taking shape in European luxury. Armani chief Giuseppe Marsocci said on September 27 that the Italian fashion house was open to multiple investors in the planned sale of a 15 percent stake, according to Reuters, with no decision yet made. Giorgio Armani's will named LVMH, L'Oréal and EssilorLuxottica as preferred potential buyers.

Supply-Chain Resilience and Executive Appointments

To address long-term risks in its value chain, LVMH announced in September a joint climate adaptation program with Bpifrance. Several group units and French suppliers are taking part, aiming to shield production against climate impacts. The company also reported its own share transactions to the French financial markets authority, the AMF.

Leadership responsibilities were reshuffled at the same time. Laura Vandendaele stepped into the role of Senior Vice President of People Experience and Learning, while Pierre-Julien Bousquet was promoted to Senior Vice President of People Engagement. Both appointments took effect immediately.

Analysts Focus on China Ahead of Earnings

These initiatives are unfolding against a marked cooling in the global luxury business. Bernstein cut its price target on LVMH to EUR 480 from EUR 520 on Tuesday while keeping its "Outperform" rating, according to media reports, pointing to softer demand for luxury goods in China.

Chinese consumers' reluctance to spend weighs heavily on the entire industry. Market watchers are therefore paying close attention to how well European luxury houses can manage costs and generate fresh distribution momentum to offset the slump in Asia.

Investors will get a clearer read on the actual business trend at the middle of the month: LVMH plans to publish its third-quarter revenue figures on October 12 after the close of trading in Paris.

Open House Across the Maisons

In a bid to strengthen ties with the public, the group is preparing a large-scale event. The final reservation phase for the "Journées Particulières 2026" opened last Wednesday, with the event set for October 16 to 18.

During that window, heritage houses including Louis Vuitton, Cheval Blanc, Loewe and Hennessy will open selected locations to visitors, with some access available without prior booking.

On the stock market, the persistent challenges are reflected in the share price. With a close of EUR 381.20, LVMH sits barely above its 52-week low of EUR 377.35. A combination of subdued demand expectations and mounting competition currently defines the group's position.