NEW YORK, Oct 3, 2002/ -- LVMH has shaken up (or, as the French luxury company puts it in its press release, "strengthened") the Donna Karan management team.

Giuseppe Brusone has been replaced by Fred Wilson as CEO of the New York-based fashion firm. The Italian exec will remain on board as chairman.

Wilson, previously president and CEO of the U.S. arm of LVMH's fashion group, has been charged with improving Donna Karan's performance in the U.S. market, particularly with the launch of an accessories line.

Men's wear will also be relaunched for fall 2003.

LVMH wants to move the brand from mass-market to a higher level of exclusivity, on par with its other luxury labels, like Louis Vuitton, Christian Dior and Fendi.

The company confirmed this week that Donna Karan will be profitable in 2002.

Brusone took over as CEO of Donna Karan International in July 2001, replacing John Idol three months earlier than expected.

LVMH closed its $643 million deal to purchase Donna Karan last December.

Brusone was formerly senior vice president of acquisitions and brand development of the LVMH Fashion Group.

His resume also includes a 14-year stint as CEO of Giorgio Armani (from 1986 to 2000), where he transformed the company into one of Italy's most profitable businesses.

He was sales director of Valentino from 1979 to 1986.

This illustrious resume apparently couldn't help Brusone bring Donna Karan up-market quite fast enough though.

There were also rumors of clashes with Karan herself, as Brusone and other LVMH brass cut staff and tried to bring in new designers.

Karan said in her statement on the management shift though that, "I have not only greatly enjoyed a personal relationship with Pino Brusone, but also his professional commitment and respect for the brand and its products. I look forward to his continuing guidance as chairman of the board."

Brusone said, "It was for me a great pleasure to work with Donna Karan company to develop a new strategy for the business. The LVMH Group has been extremely supportive to allow me to reposition that company and put in place the new management team as the major objective of my mission." His contract with LVMH expires next year.