LVMH’s Arnault joins Nike board as sportswear giant set to lose S&P 100 spot
The son of LVMH billionaire Bernard Arnault has been appointed to Nike’s board of directors a week after it was announced the sportswear giant will lose its S&P 100 spot.
Alexandre Arnault, currently deputy chief executive of LVMH’s wines and spirits division, will hope to help the US apparel firm stem a trend of share price decline.
Nike stock has fallen by over 75 per cent since its 2021 peak, representing a $200bn fall in its market cap.
“Alexandre has earned a reputation for helping iconic global brands evolve, innovate and grow in a changing, complex marketplace,” said Nike executive chair Mark Parker.
It comes amid reports suggesting Nike is nearing a deal with Formula 1, an organisation that has an existing 10-year, $1bn deal with LVMH.
On X, Arnault said that he was “incredibly honoured to join the board of directors”, adding that he had been a “lifelong fan of the brand and everything it stands for”.
LVMH to Nike
The Arnault family currently owns French Ligue 1 club Paris FC, which counts Nike rival Adidas as its kit supplier.
A number of LVMH brands featured across the 2024 Paris Olympic Games while their high-profile ambassadors include the likes of swimmer Leon Marchand, rugby playyer Antoine Dupont and tennis player Carlos Alcaraz.
Alexandre Arnault, 34, is the third of five children, all of whom hold roles within the family empire – which is worth £170bn. He used to be the executive vice president of products at Tiffany & Co.
Nike has been seen to be losing ground across the sports sponsorship sector to rivals such as Adidas and Puma, while challenger brands such as On and Castore have made moves across the industry.
But the US firm maintains a strong presence across sport and partnerships with the likes of Michael Jordan have proved fruitful for the organisation, which is headquartered in Oregon.