LVMH’s Arnault joins Nike board as sportswear giant set to lose S&P 100 spot

LVMH's Bernard Arnault's son, Alexandre Arnault, has been appointed to Nike's board of directors, a week after the sportswear giant lost its S&P 100 spot. Alexandre, the deputy chief executive of LVMH's wines and spirits division, is expected to assist Nike in reversing its share price decline. Nike's stock has plummeted by over 75% since its 2021 peak, resulting in a $200 billion decrease in market capitalization.

Nike executive chair Mark Parker praised Alexandre, stating that he has a proven track record of helping iconic global brands evolve, innovate, and grow in a changing and complex marketplace. This appointment comes amid reports of Nike nearing a deal with Formula 1, an organization that currently has a 10-year, $1 billion agreement with LVMH.

Alexandre, who is 34 years old, expressed his honor in joining Nike's board of directors and has been a lifelong admirer of the brand. The Arnault family, which owns the French Ligue 1 club Paris FC, has a significant presence in the sports industry. Several LVMH brands were showcased at the 2024 Paris Olympic Games, and their high-profile ambassadors include swimmer Leon Marchand, rugby player Antoine Dupont, and tennis player Carlos Alcaraz.

Alexandre is the third of five children in the family empire, all of whom hold roles within it, and their collective wealth is estimated at £170 billion. Alexandre previously served as the executive vice president of products at Tiffany & Co. While Nike faces competition from rivals such as Adidas and Puma and challenges from challenger brands like On and Castore, it still maintains a strong presence in the sports sector, with successful partnerships like the one with Michael Jordan.