Bernard Arnault’s net worth increased by about $30 billion this week to $207 billion. The CEO of LVMH has overtaken Mark Zuckerberg to become the third richest person in the world. The company’s shares soared on the back of Chinese stimulus and LVMH’s new bet on Moncler.
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Bernard Arnault became almost $30 billion richer this week, overtaking Mark Zuckerberg to become the third richest person in the world.
The wealth of high-class billionaires rose from $177 billion to $207 billion from Monday to Friday, according to the Bloomberg Billionaires Index. The surge was fueled by a nearly 20% rise in LVMH shares after China this week outlined a raft of measures to stimulate its ailing economy.
Shares in LVMH, which owns about 75 brands including Dior, Sephora and Tiffany, closed 3.7% higher on Friday after the company announced the purchase of an indirect stake in Moncler, an Italian brand known for its ski jackets. .
The rise allowed Arnault, founder and CEO of LVMH, to leapfrog Zuckerberg on the list of richest people. Meta CEO’s net worth has fallen slightly to $201 billion, but it’s still up nearly $74 billion this year.
“The Wolf in Cashmere” brought about a major turnaround in his fortunes. He was the richest person on the planet at the end of March, with a net worth of $231 billion. But his wealth has since declined by $54 billion over the next six months, to $177 billion last week, placing him fifth on Bloomberg’s list.
This week’s big gains move him into third place, with a $25 billion lead over Oracle co-founder Larry Ellison, who is worth $182 billion.
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Arnault’s wealth has also shrunk this year from $30 billion to just $252 million as of Friday’s close.
LVMH stock’s decline this year has narrowed from about 20% to 2.7%. Arnault and his family own about 245 million shares, or about 49% of the company, according to a July filing.
The beauty and fashion giant has faced pressure on revenue and profits this year, with Arnault warning of economic and geopolitical uncertainty in its second-quarter earnings call. This is especially true in China, a key market for LVMH, which generates about 30% of its sales in Asian countries excluding Japan.
Investors hope China’s economic stimulus package (which could include interest rate cuts, liquidity support, lower bank reserve requirements, equity stabilization funds, etc.) will buy luxury goods like Louis Vuitton handbags and Dom Perignon Champagne. Stocks rose this week as investors bet on stimulating demand for. .
