Bernard Arnault, the CEO of LVMH Moët Hennessy Louis Vuitton, has seen his net worth tumble by a staggering $54 billion, knocking him from the world’s richest person to the cusp of fifth place. His fortune peaked at a record $231 billion in March, surpassing both Elon Musk and Jeff Bezos on the Bloomberg Billionaires Index. However, as of Wednesday’s close, his net worth has plummeted to $177 billion, marking the largest wealth loss among the top 500 individuals on Bloomberg’s list. This year alone, Arnault has lost a staggering $30 billion. He is now a mere $1 billion ahead of Larry Ellison, the co-founder of Oracle. Forbes’ rankings reflect this decline, placing Arnault’s net worth at $175 billion, falling behind Musk, Bezos, Ellison, and Mark Zuckerberg.
The sharp drop in Arnault’s wealth is largely attributed to a 16% decline in LVMH’s stock price, reaching its lowest point in two years. The company has faced challenges, including a meager 2% increase in underlying revenues and an 8% drop in income from recurring operations during the first half of the year.
This dramatic decline in Arnault’s net worth highlights the volatility inherent in the luxury goods market. In response to these challenges, Arnault and LVMH have made strategic moves. In August, Arnault invested over $300 million in artificial intelligence startups through his family office, Aglaé Ventures. Earlier this year, Arnault’s son launched a new division within LVMH targeting the lucrative $30 billion luxury watch market, aiming to capture a larger share of this sector. The company’s jewelry and watch division generated sales of $11.8 billion in 2023, representing a 7% organic growth according to IMARC Group. Additionally, Arnault has been involved in high-profile discussions with industry leaders like Musk. In July, Arnault revealed discussions with Musk about a potential collaboration between SpaceX and Louis Vuitton, demonstrating the innovative approaches he considers.
