Bernard Arnault, the CEO of LVMH Moët Hennessy Louis Vuitton (OTC:LVMHF) (OTC:LVMUY), has seen his net worth drop by $54 billion, moving him from the world's richest person to nearly fifth place.
What Happened: Arnault's fortune peaked at $231 billion in March, placing him ahead of Elon Musk and Jeff Bezos on the Bloomberg Billionaires Index. However, his net worth has since fallen to $177 billion as of Wednesday's close.
This significant drop makes Arnault the biggest wealth loser among the top 500 individuals on Bloomberg's list, with a $30 billion decrease this year alone. He is now only $1 billion ahead of Larry Ellison, co-founder of Oracle.
Forbes' rankings also reflect this decline, showing Arnault's net worth at $175 billion, placing him behind Musk, Bezos, Ellison, and Mark Zuckerberg.
The decline in Arnault's wealth is largely due to a 16% drop in LVMH's stock price, which has hit its lowest level in two years. The company has faced challenges, including a mere 2% increase in underlying revenues and an 8% drop in income from recurring operations in the first half of the year.
Why It Matters: The dramatic decline in Arnault's net worth underscores the volatility in the luxury goods market. This comes after a series of strategic moves by Arnault and LVMH to navigate market challenges. In August, Arnault invested over $300 million in artificial intelligence startups through his family office, Aglaé Ventures.
Earlier this year, Arnault's son set his sights on the $30 billion luxury watch market, launching a new division within LVMH to capture a larger share of this lucrative sector. The company's jewelry and watch division recorded 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 that he and Musk once discussed a potential collaboration between SpaceX and Louis Vuitton, highlighting the innovative approaches that he considers.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
