Bernard Arnault, the founder and CEO of luxury goods conglomerate LVMH, has fallen from the top spot on the list of the world’s richest people. Arnault’s net worth has dropped by $54 billion, moving him to the fifth position. The decline in Arnault’s wealth is due to a 20% drop in LVMH’s stock price.
Arnault, who owns about 48% of the company, was valued at an estimated $231 billion in late March. This placed him ahead of Elon Musk, Jeff Bezos, and Mark Zuckerberg. As of Monday, Arnault’s net worth stood at approximately $177 billion.
He now ranks below Musk, Bezos, Zuckerberg, and Larry Ellison. Since the start of 2024, Arnault’s net worth has decreased by $30 billion. This makes him the biggest loser on the list year-to-date.
Arnault’s wealth declines significantly
The luxury market has been struggling recently. LVMH reported a drop in volumes during the first half of 2024.
Jean-Jacques Guiony, LVMH’s chief financial officer, stated during the company’s earnings call in late July, “Maybe the current global situation, be it geopolitical or macroeconomic, doesn’t lead people to cheer up and open bottles of champagne. The matter of fact is, is that our volumes are down double digits.”
This trend has also been observed with other major luxury brands and holding houses. They have reported losses this year.
Luxury revenues were flat during Q2 2024, marking the slowest growth in 15 quarters. Despite the significant declines, Arnault remains wealthier than former CEOs Bill Gates and Steve Ballmer, as well as Warren Buffett, Michael Dell, and Jensen Huang. Arnault, now 75, has extended his tenure at LVMH by pushing the board to raise the retirement age from 75 to 80.
He continues to maintain a busy schedule, often putting in 12-hour workdays. “Every morning I have fun when I arrive,” Arnault said.
