- LVMH CEO Bernard Arnault’s net worth surpassed $200 billion on Tuesday.
- He is the third person ever — after Elon Musk and Jeff Bezos — to reach this level of wealth.
- Arnault’s fortune grew on the back of LVMH’s soaring stock price, which is up nearly 25% this year.
Bernard Arnault, the CEO and cofounder of LVMH Moët Hennessy Louis Vuitton, is the richest person in the world — and has just reached a new financial milestone.
Arnault’s net worth climbed to over $200 billion on Tuesday, making him the third person ever — after Tesla CEO Elon Musk and Jeff Bezos, the founder of Amazon — to reach attain that level of wealth, according to Bloomberg Billionaires Index. Arnault is also the first person outside the US to surpass a net worth of $200 billion.
Arnault derives his wealth from a 97.5% stake in the luxury fashion brand Christian Dior holding company that controls 41.4% of LVMH. His net worth increased by $2.4 billion on Tuesday, bringing the Frenchman’s fortune to $201 billion, per Bloomberg’s index.
LVMH shares on the Euronext Paris stock exchange closed 0.8% higher at 851 euros, or $932.30, on Tuesday. The stock is up about 25% this year.
A luxury boom is propping up Arnault’s wealth
The French tycoon’s net worth has doubled since the beginning of 2020 amid strong demand for luxury goods as consumers splurged on designer handbags and watches during pandemic lockdowns.
This robust appetite for luxury goods is helping LVMH, which owns a range of luxury fashion brands including Louis Vuitton, Tiffany & Co., and TAG Heuer. LVMH posted a 23% year-on-year growth in revenues as well as profits from recurring operations in 2022, according to the company’s financials.
Millennials and Gen Z are also driving growth in this market. A record number of Americans between the ages of 18 and 29 are opting to live at home with their parents — at a level not seen since the Great Depression — thus freeing up disposable income for splashing out on luxury goods, Insider’s Nidhi Pandurangi reported in December.
LVMH is also making a targeted move to win over customers in Asia.
Shoppers in China are expected to boost the luxury goods sector this year after the country lifted zero-COVID restrictions. Chinese consumers are expected to boost demand for high-end apparel, accessories, and other items by 20% in 2023, according to a Morgan Stanley report on March 13.
To reach younger shoppers, particularly in Northeast Asia, LVMH has made a calculated move to enlist K-pop stars in marketing campaigns for brands including Dior and Tiffany.
Arnault kept the management in the family
Arnault has appointed his five children to leadership positions across his business empire, keeping much of the management of the conglomerate’s luxury brands in his family.
In July 2022, Arnault changed the legal structure of his family holding company, Agache — the controlling shareholder of Christian Dior — to ensure his family’s long-term control over LVMH.
The 73-year-old tycoon has not named his successor as LVMH’s CEO. His daughter, Delphine Arnault, is the CEO of Dior, while his oldest son, Antoine Arnault, is the CEO of LVMH’s holding company, Christian Dior.
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