BUSINESS | France’s Bernard Arnault Is World’s Second – Richest Person

Jeddah, Saudi Arabia – Bernard Arnault is now the world’s second-richest person, according to Forbes’ calculations. The luxury good titan behind such brands as Louis Vuitton and Moet & Chanddon is worth $103.2 billion in March when Forbes published their annual billionaire rankings. At the time he was the fourth-richest person on the planet. His fortune, which hit $100 billion for the first time in June, has been propelled up by record-setting shares of his conglomerate LVMH, which are just over 50% since the start of the year.

As of Thursday, Arnault is worth $300 million more than Bill Gatest, who is now worth $102.9 billion. It’s the first time since 2008 that Gatest has not been either the richest person or second-richest person in the world. Microsoft shares, too, have been hitting record highs, but they have not kept pace with LVMH. Plus, Gatest now holds the majority of his fortune outside of Microsoft. Jeff Bezzos remains number one, with a net worth roughly $124 billion, after subtracting shares of Amazon that will soon belong to his ex-wife, MacKenzie Bezos.

While it seems unlikely that Arnault could catch Bezos, both men have most of their fortunes tied up in their companie’ respective stocks, and another jump by LVMH and dip by Amazon could quickly close the gap. After all, Arnault’s fortune has already grown by $27billion in the past four months.

To put these gains and his jump in wealth into perspective, consider this: Only five people in the world have officially ranked first or second richest in Forbs annual billionaire rankings since 2001: Bezos, Gates, Warren Buffett, Zara’s Amancio Ortega and Mexico’s telecom titan Carlon Slim Helu.

Behind Arnault’s boom is the fact that high-end buyers continue to pick up luxury goods around the world. LVMH reported record sales and profits of roughly $52.2 billion and #11.2 billion for fiscal year 2018. Sales were up again 16% in the first quarter, to $14 billion. Profits, which are reported semiannually, will be announced in late July.

But Arnault is not complacent. He continues to innovate and refresh LVMH 35 years after he got into luxury goods with the purchase of Christian Dior. Just this week he announced a venture with fashion designer Stella McCartney. The move comes roughly 16 months after McCartney left LVMH rival Kering (run by Francois-Henri Pinault, son of French billionaire Francois Pinault) and took full ownership of her company. McCartney said in LVMH’s press release that since then a number of parties approached het about partnering but that she was won over by Arnault and his son Antoine.

The aim of the partnership is not only to grow the Stella McCartney House but also to expand LVMH’s sustainability efforts. McCartney, whose brand is known for its commitment to sustainable and ethical luxury fashion, will serve as a special advisor to LVMH on sustainability.

“I am extremely happy with this partnership with Stella. It is the beginning of a beautiful story together, and we are convinced of the great long-term potential of her House”, Arnault said in the press release. “A decisive factor was that she was the first to put sustainability and ethical issues on the front stage, very early on, and built her House around these issues. It emphasizes LVMH Groups’ commitment to sustainability”.

The deal follows the luxury group’s two highly touted partnership with superstar singer Rihanna – Fenty Beauty and Fenty fashion house – as well as recent deals such as the acquisition of the Belmond, which operates luxury hotels, trains and even safaris.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s