Dior naming Anderson as sole creative director seen as a positive for LVMH

Investing.com -- Dior’s appointment of Jonathan Anderson as sole creative director is viewed positively by analysts at Morgan Stanley (NYSE:MS), who cite the implications for parent company LVMH (EPA:LVMH).

Anderson will oversee Dior’s women’s, men’s and haute couture divisions, following his initial appointment to head Dior Homme in April. 

His first men’s collection will debut June 27 during Paris Fashion Week. He succeeds Maria Grazia Chiuri, who led Dior’s women’s division since 2016 and whose departure was confirmed last week after her final show in Rome.

Although the move was widely anticipated, Morgan Stanley analysts said the confirmation is a constructive development. Dior, the second-largest contributor to LVMH’s profit after Louis Vuitton, accounted for an estimated 16% of group profit in 2024. 

Analysts noted Dior has had a difficult start to 2025, with sales likely down more than 10% year-over-year. They estimate annual revenue will fall to €7.4 billion, returning to 2021 levels.

Morgan Stanley described Anderson as a highly regarded figure in the fashion industry and said his appointment should give investors confidence that Dior’s performance could stabilize by late 2026. 

While concerns remain over the consolidation of creative leadership, Dior’s first such move in over 25 years, analysts believe Anderson’s record justifies the decision.

Anderson has led Loewe since 2013, during which time the brand’s revenue rose from approximately €200 million to nearly €1.6 billion, according to Morgan Stanley estimates. 

His tenure was credited with elevating Loewe’s cultural relevance and commercial profile, including the launch of the Puzzle bag and the creation of the Loewe Foundation Craft Prize. 

He has received multiple industry awards and is known for his focus on craft and brand coherence.

“Given the importance of Dior for the LVMH Group, we see this as a clear net positive for LVMH’s equity story,” Morgan Stanley analysts said.

Dior will not participate in the upcoming Haute Couture shows in July. Anderson’s debut for the women’s line is scheduled for Oct. 1, coinciding with new collections from other major fashion houses including Chanel, Gucci and Balenciaga.

Anderson’s expanded role includes 10 collections annually at Dior, including haute couture, in addition to ongoing work at JW Anderson and a collaboration with Uniqlo. 

This workload makes him one of the most prolific designers in the industry, drawing comparisons to Karl Lagerfeld.

Despite Dior’s recent slowdown, LVMH remains a dominant force in luxury. Louis Vuitton contributed an estimated 56% of group EBIT in 2024, with Dior, Sephora, Bulgari and others forming the balance. 

Morgan Stanley maintains an “equal-weight” rating on LVMH shares, with a price target of €560.