LVMH scales Thélios with Longarone hub, tightening control of maison eyewear
Bottom Line Impact
Thélios' expansion should lift maison margins and speed, fortify brand equity via superior quality and scarcity control, and strengthen LVMH's competitive position in an entry-category that drives traffic and lifetime value.
Key Facts
5- Thélios' optical division now spans 430,556.42 sq ft and employs 1,300+ personnel in Longarone, Belluno
- Thélios was fully integrated into LVMH in 2022, consolidating design, production, and distribution
- Brand portfolio serviced includes 12 brands: Dior, Fendi, Celine, Loewe, Kenzo, Berluti, Bulgari, TAG Heuer, Fred, Stella McCartney, Barton Perreira, Vuarnet
- Ludovic Pauchard was appointed director of industry and craftsmanship and executive chairman of Métiers d'Art in June 2024
- Mandate includes coordinating industrial managers across maisons, designing transformation plans, and protecting artisanal know-how
Time Horizons
Key Roles Affected
Executive Summary
LVMH has expanded Thélios into a scaled industrial platform, adding a new Longarone plant that consolidates eyewear design-to-distribution for key maisons including Dior, Fendi, Celine, and TAG Heuer. With a new groupwide industrial chief aligning Métiers d'Art, LVMH can accelerate time-to-market, recapture licensing economics, and use eyewear as an entry product to defend share against Kering Eyewear and EssilorLuxottica.
Actionable Insights
Immediate Actions (Next 30-90 days)
Set a cross-maison eyewear growth program targeting 20 to 30 percent revenue uplift in 2025 with DTC mix at 45 percent and gross margin +300 bps versus 2024 baseline
Rationale: Consolidated manufacturing and Métiers d'Art coordination enable rapid scaling while retaining brand control and margins
Role affected:CEO, LVMH
Urgency level:immediate
Lock 2-source contracts for lenses and hinges, implement 95 percent OTIF SLA, and push capacity utilization to 85 percent by Q2 2025
Rationale: De-risks single-site concentration and institutionalizes service levels that underpin maison launches
Role affected:COO, Thélios
Urgency level:immediate
Short-term Actions (6-12 months)
Deploy monthly micro-drops tied to runway and capsule moments, with 8 to 10 limited SKUs per drop and 70 percent sell-through in 30 days
Rationale: Shortened prototype-to-shelf cycles at Longarone support higher novelty cadence that drives DTC traffic and social buzz
Role affected:CMO, Dior and Celine
Urgency level:short-term
Set transfer pricing and internal royalty benchmarks to capture 8 to 12 percent licensing-equivalent margin and track capex payback under 36 months
Rationale: Formalizing economics ensures margin recapture from vertical integration and capital discipline
Role affected:CFO, Dior and Fendi
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Ramp-up execution risk at Longarone leading to OTIF shortfalls and launch delays in Q4 to Q1
- Concentration risk in a single region creating exposure to labor, supply, or regulatory shocks
- Brand dilution risk if eyewear volume growth outpaces design discipline and tiering
Primary Opportunities
- Margin expansion from internalizing licensing and procurement synergies across maisons
- Faster innovation cycles enabling runway-synchronized launches and exclusive DTC drops
- Stronger sustainability and origin storytelling via made-in-Italy and traceable components