LVMH boss Bernard Arnault’s net worth surpassed $200 billion, making him the third person after Elon Musk and Jeff Bezos to exceed $200 billion in net worth, LVMH CEO Bernard Arnault on Tuesday. He is the third person after Elon Musk and Jeff Bezos to reach this level of wealth.
Bernard Arnault, CEO and cofounder of LVMH Moët Hennessy Louis Vuitton, is the world’s richest man and has just reached a new financial milestone.
Arnault’s net worth surpassed $200 billion on Tuesday, according to the Bloomberg Billionaires Index, making him the third person behind Tesla CEO Elon Musk and Amazon founder Jeff Bezos. Arnault is also the first person outside the US to surpass the $200 billion net worth.
Arnault derived his wealth from a 97.5% stake in the luxury fashion brand Christian Dior Holding Company, which controls 41.4% of LVMH. His wealth increased by $2.4 billion on Tuesday, taking the Frenchman’s net worth to $201 billion, according to Bloomberg’s index.
Shares of LVMH closed up 0.8% on Tuesday at 851 euros, or $932.30, on the Euronext Paris stock exchange. The stock has gained nearly 25 per cent this year.
The luxury boom is boosting Arnault’s wealth – the French tycoon’s net worth has doubled since the start of 2020 as strong demand for luxury goods spurred consumers to spend on designer handbags and watches during the pandemic.
This strong appetite for luxury goods is helping LVMH, which owns a number of luxury fashion brands including Louis Vuitton, Tiffany & Co and TAG Heuer. LVMH forecasts 23% year-over-year growth in revenue as well as profit from recurring operations in 2022, according to the company’s financial data.
Millennials and Gen Z are also growing in this market. A record number of Americans between the ages of 18 and 29 are choosing to live at home with their parents at a rate not seen since the Great Depression, thus increasing spending on luxuries Is. Insider’s Nidhi Pandurangi reported in December that the proceeds had been freed.
LVMH is also taking targeted steps to win over customers in Asia.
Shopping in China is expected to boost the luxury goods sector this year after the country lifted zero post-Covid restrictions. According to a Morgan Stanley report on March 13, Chinese consumers expect demand for high-end apparel, accessories and other items to increase by 20% in 2023.
To reach younger shoppers, especially in Northeast Asia, LVMH has made a concerted move to include K-pop stars in marketing campaigns for brands including Dior and Tiffany, Insider’s Cheryl Teh reported in January.
Arnault has appointed five of his children to leadership positions in his business empire, keeping most of the management of the group’s luxury brands in his family.
In July 2022, Arnault changed the legal structure of his family holding company to Christian Dior’s controlling shareholder, Agache, to ensure his family’s long-term control over LVMH.
The 73-year-old tycoon is yet to name his successor as CEO of LVMH. His daughter, Delphine Arnault, is CEO of Dior, while his eldest son, Antoine Arnault, is CEO of Christian Dior, the holding company of LVMH.