Pharrell selected to become LVMH's next men's creative director

Louis Vuitton, tapping musical artist and producer, Pharrell Williams as its new men's creative director. Robert Frank joins us right now with more on this strategic move from the luxury brand giant LVMH. Robert, what's behind the move? Well, Becky, as you say, investors happy about this LVMH shares up 21 percent this year, up again today. Now, a market cap of over $440 billion. It is the most valuable company in Europe, CEO Bernard Arnaud closing in on a net worth of close to $200 billion. He is the richest person in the world right now. LVMH announcing yesterday it's hiring Pharrell Williams.

This is part of a strategy not just for being a luxury goods company, but what Arnaud calls a culture company. They're tapping into music, art, movies, even sports to create hype and attention. LVMH is part owner of Rihanna's cosmetics line, Fenty Beauty. And Tiffany, which is now owned by LVMH, did that famous partnership campaign with Jay-Z and Beyonce for an ad campaign. A new line with Japan's top selling female artist is now sold out in many stores. But this Pharrell move is its biggest bet yet on mixing pop culture and luxury. Louis Vuitton is now the biggest fashion brand in the world.

It has doubled sales over the past four years to over $20 billion a year. So that's just the Louis Vuitton brand. That's one of 75 maisons at LVMH. The profit margins at Louis Vuitton now at about 50%. Pharrell co-founded the billionaire boys club fashion line. He founded the skate shoe brand Ice Cream. He's got all kinds of collaborations with Chanel, Diesel and Adidas.

Louis Vuitton has a new CEO. And there are questions about how quickly demand will come back in China. But this isn't just a partnership, Becky. This is really, Pharrell is going to be an executive within Louis Vuitton deciding twice a year to do an entire men's line. It's going to be accessories, clothing, bags, et cetera. This is a big job and a big bet for a big brand. Yeah, I was going to say, this is not your typical tie up with a celebrity where they kind of lend their cash aid or something.

This is an actual job. This is pretty different than what you've seen with just about any other position. Because there are, you mentioned Rihanna and man, she's into that line. You saw her pull her makeup and fix it at the Super Bowl. Great marketing opportunity. But Pharrell, I think, has had some pretty serious jobs before that kind of lend into this. It seems a little different to me.

It is different. And remember, this is a job that prior to him was Virgil Abloh, who was an icon in the fashion business. The shoes he designed with Nike now sell for $350,000. So these are literally big shoes to fill. Before that, it was Mark Jacobs, who is a designed icon. So you're absolutely right. And this is a big bet because this is a brand that's now $20 billion.

And he's now in charge, not just collaborating on sunglasses or sneakers. So it'll be interesting to watch. But so far, shareholders like it. How do you think this shifts his own life? I mean, do you imagine this is now in the portfolio that is Pharrell? Is this now a job that takes 50% of his time, 25% of his time, 75% of his time, 100% of his time? And how does that work? Again, you talk about shareholders in a larger company. How does the portfolio approach work? Yeah, Andrew, that was the question that I was asking yesterday to analyst and also to myself because, again, he's had all these fun collaborations. He can continue doing red carpet events, dabbling in music production. This is going to be, you know, when you're doing two giant collections and all the shows around it a year that span the entire product range, this is going to be his life and job and a very demanding one.

So I think it radically changes his life. This is going to be his full-time gig. Although he may do some other things on the side. But yeah, this is a job. How much money do you think he's getting for this? Because he makes an enormous amount of money in performing. A lot. He makes a lot.

I mean, he has a lot of things going on. By the way, David's still DJing. A lot, a lot, a lot. I don't know the number, but it's got to be massive. David Solomon can still DJ even while he's CEO of Goldman. So maybe he has a little bit of free time. Is it as much as a leery guy from FDS? That's what I want to know.

You know? $15 million? I would assume it actually would have to be a lot more than what. Oh my God. What can we do?.

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