Fashion tycoon Bernard Arnault loses billions from fortune in share price bloodbath
The wealthiest person on the planet has seen a staggering $17 billion wiped from his fortune within hours after a share price bloodbath.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
The wealthiest person on the planet has seen a staggering figure wiped from his fortune within hours after a share price bloodbath.
Fashion tycoon Bernard Arnault lost $16.9 billion ($US11.2 billion) on Tuesday as investors grow increasingly spooked that America’s economic woes will see demand for luxury items plummet.
Mr Arnault – the founder of LVMH, which owns a string of iconic brands including Tiffany & Co, Christian Dior, Fendi, Givenchy, Marc Jacobs, Loewe, Sephora, TAG Heuer and Bulgari – had been enjoying a bumper year in which his personal wealth exploded, until LVMH shares suddenly dropped by 5 per cent this week.
It represented the biggest fall in more than 12 months, and occurred during a wider crash that saw $45 billion disappear from the European luxury industry.
However, you don’t have to feel too sorry for the rich-lister.
The 74-year-old still has a cool $319 billion ($US211 billion) to his name despite the wipe-out, according to Forbes World’s Billionaires List.
Tesla founder and “chief twit” Elon Musk retains second place with a $273 billion ($US180 billion) net worth, with Jeff Bezos taking out third place.
Mr Arnault earned the title of world’s richest person back in December 2022 after knocking Musk off the top spot thanks to a drop in Tesla’s share price.
And in February this year, Bloomberg reported that he was working on a succession plan to prevent any future fighting among his five adult children over his vast wealth.
The plan involved the creation of a new holding company that splits the cash equally among his offspring in a bid to ensure LVMH remains in the family in future.
Last month, LVMH also reached a major milestone after becoming the first European company to reach a market value of $756 billion ($US500 billion) as the appetite for high-end brands exploded among the elite.
Who is Bernard Arnault?
Bernard Arnault is the chief executive of French luxury goods conglomerate LVMH Moët Hennessy – Louis Vuitton, known as LVMH.
He started his career as an engineer at his father’s construction company and eventually worked his way up to became chairman.
Over the years he earned the nickname “the wolf in cashmere” thanks to his ruthless takeovers of companies he had his eye on.
“Arnault is a man of great vision,” Pierre Mallevays, former head of acquisitions at LVMH, previously told The Guardian.
“He did not invent luxury brands, but he invented the luxury industry.”
Arnault made his first big move in fashion by acquiring a near bankrupt textile company, Boussac, the parent company of Christian Dior, in 1984.
In 1989, Arnault became the majority shareholder and chief executive of LVMH.
He has five children, two with his first wife Anne Dewavrin and three with his current wife Helene Mercier. All his children have senior roles at LVMH.
Late last year, Arnault’s second oldest child, Antoine, 45, was named chief executive of Christian Dior SE, the holding company through which the family controls LVMH.
The oldest of the children, Delphine, 47, became the youngest member of LVMH’s executive committee at age 43. She is also the executive vice president at Louis Vuitton.
Their youngest sibling, Jean, 24, is the marketing and product development director for watches at the same company.
LVMH fashion brands also include Christian Dior, Givenchy, Fendi, Celine and Marc Jacobs.
Stella by Stella McCartney, Fenty Beauty by Rihanna and Benefit Cosmetics are in the perfumes and cosmetics category. LVMH also owns Sephora.
Moët & Chandon and Hennessy are among its wine and spirit brands, and it also has luxury hotels and hospitality brands.
When it comes to watches and jewellery, the empire owns TAG Heuer, where Arnault’s second youngest child Frédéric, 27, is chief executive, and Bulgari.
LVMH was involved in what is believed to be the biggest luxury brand acquisition ever in January 2021 when it bought jeweller Tiffany & Co for $23 billion ($US15.8 billion).
Arnault’s third child, Alexandre, 30, was made executive vice president of product and communications.
– with Chantelle Francis
Originally published as Fashion tycoon Bernard Arnault loses billions from fortune in share price bloodbath
Why bank may have to pay you hundreds
Nearly two million Aussies could soon receive hundreds of dollars after multiple major banks were ordered to issue more than $28m in refunds.
Millions to get money back from bank
Millions of Aussies will get money deposited back into their account after it was found major banks overcharged.