Once quoted as saying, “As long as I’m not the richest man in the world, I won’t really be happy,” Bernard Arnault has now fallen from the top spot.
The founder and CEO of luxury giant LVMH has slipped from being the world’s richest person to the fifth after a significant 20% decline in LVMH’s stock price, leading to a $54 billion reduction in his net worth.
Arnault, who heads renowned brands like Louis Vuitton, Dior, Moët Hennessy, and Fendi, was valued at an impressive $231 billion in late March, according to the Bloomberg Billionaires Index. This placed him ahead of prominent business figures such as Tesla’s Elon Musk, Amazon’s Jeff Bezos, and Meta’s Mark Zuckerberg. However, as of Monday, his wealth has dropped to an estimated $177 billion, pushing him below all three, plus Oracle co-founder Larry Ellison.
LVMH's stock has fallen more than 16% in the past year and is currently trading at about $132 per share. Arnault, who holds roughly 48% of the company, has seen his net worth drop by $30 billion since the start of 2024, making him the biggest financial loser among the world’s wealthiest individuals this year. LVMH declined to comment on the situation.
Challenges Facing LVMH
LVMH reported a slight decline in revenues in the first half of 2024, with its wine and spirits divisions suffering the most. Jean-Jacques Guiony, the company's CFO, noted during a July earnings call that geopolitical and macroeconomic factors might be affecting consumer behavior: “Maybe the current global situation doesn’t lead people to cheer up and open bottles of champagne... Our volumes are down double digits.”
LVMH isn’t alone in facing difficulties in the luxury market. Other high-end brands and conglomerates have also struggled this year. According to a Bank of America report, luxury revenues were flat in Q2 2024, marking the slowest growth in 15 quarters. Demand worsened over the summer months of July, August, and September.
Capri Holdings, the parent company of brands like Michael Kors, reported a revenue decline of over 14% in its first fiscal quarter of 2025. Michael Kors himself highlighted the cyclical nature of the luxury market during an antitrust trial, stating, “Sometimes you’ll be the hottest thing on the block, sometimes lukewarm, sometimes cold.”
Arnault’s Wealth and Ongoing Investments
Despite the $54 billion loss, Arnault’s $177 billion net worth still keeps him wealthier than former Microsoft CEOs Bill Gates and Steve Ballmer, as well as Warren Buffett and Nvidia CEO Jensen Huang.
Arnault, 75, has remained active in investments this year, particularly in the AI sector, where his family office has invested hundreds of millions of dollars across five AI startups. In addition, he was part of the bidding process for Venice’s iconic Hotel Bauer in July, offering $305 million, but was ultimately outbid.
Arnault isn’t planning to step down anytime soon. He extended LVMH’s retirement age for its chairman and CEO from 75 to 80 to prolong his tenure. He even received a letter from Warren Buffett, 93, suggesting he should have raised the limit even higher. Arnault, who claims to work 12-hour days, told Bloomberg, “Every morning I have fun when I arrive.” Photo by Jérémy Barande, Wikimedia commons.