LVMH denies rumors of CEO change at Moët Hennessy amid declining sales

FRANCE – French luxury goods giant LVMH has refuted claims regarding a leadership change in its Wine and Spirits division, deeming reports of the replacement of Moët Hennessy CEO Philippe Schaus as “inaccurate.”  

The company expressed surprise at the rumors, which were reported by French investigative media outlet La Lettre. 

According to the report, LVMH was set to appoint Laurent Boillot, president of Hennessy, to replace Schaus, who has been at the helm of Moët Hennessy for seven years and a member of LVMH’s executive committee since 2012.  

The group has denied any changes in the division’s leadership, despite the speculation. 

The rumors emerged amid a challenging year for Moët Hennessy.  

The Wine and Spirits division reported an 11 percent drop in revenue to €4.69 billion (US$5.08 billion) for the first nine months of the year, with an 8 percent decline in organic terms.  

The Cognac and Spirits business unit also experienced a decline, with a 12 percent drop in revenue to €2.1 billion, representing an 11 percent organic slump. 

LVMH attributed much of the division’s struggles to weak demand in China, where the Cognac business has faced continued challenges.  

Rodolphe Ozun, LVMH’s director of financial communications, cited “ongoing prudence among retailers” and a weaker macroeconomic environment as key factors behind the decline in the Chinese market. 

In contrast, the U.S. market offered some relief for Hennessy in the third quarter. Ozun noted growth driven by the restocking of Hennessy VS, as well as the gradual alignment between sell-in and sell-out volumes following excessive retailer destocking earlier in the year. 

This decline in sales has raised concerns about the division’s outlook, especially as China imposes “provisional” anti-dumping measures on EU imports, including brandy. 

These tariffs, which took effect on October 11, are expected to exacerbate the division’s challenges in China. 

Deputy finance director Cécile Cabanis acknowledged the negative impact of China’s tariffs but added that Moët Hennessy has additional stock and inventory that may mitigate the effects in the short term. 

Despite these difficulties, LVMH remains optimistic about its future. The company is focused on enhancing brand desirability and retaining its leadership in the global luxury market, even as its Wine and Spirits division navigates these headwinds. 

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