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- Bernard Arnault’s net worth has soared by about $30 billion this week to $207 billion.
- The LVMH CEO leapfrogged Mark Zuckerberg to become the world’s third-richest person.
- Its stock has surged on the back of China’s stimulus plans and LVMH’s new bet on Moncler.
Bernard Arnault got about $30 billion richer this week — and zoomed past Mark Zuckerberg to become the world’s third-richest person.
The luxury tycoon’s fortune ballooned from $177 billion to $207 billion between Monday and Friday, per the Bloomberg Billionaires Index. The surge was fueled by a near-20% rise in shares of LVMH, galvanized by China outlining a raft of measures to stimulate its ailing economy this week.
Shares of LVMH — home to around 75 brands including Dior, Sephora, and Tiffany & Co. — closed 3.7% higher on Friday after the company announced its purchase of an indirect stake in Moncler, the Italian label famous for its ski jackets.
That rise allowed Arnault, LVMH’s founder and CEO, to leapfrog Zuckerberg on the rich list. The Meta CEO’s net worth dipped slightly to $201 billion, but remains up almost $74 billion this year.
The “Wolf in Cashmere” has seen quite the turnaround in his fortune. He was the richest person on the planet with a $231 billion net worth in late March. But his wealth crashed by $54 billion over the next six months to $177 billion last week, landing him in fifth place on Bloomberg’s list.
His massive gain this week has propelled him into third place, with a $25 billion lead over Oracle cofounder Larry Ellison, who is worth $182 billion.
Arnault’s wealth decline this year has also shrunk from $30 billion to just $252 million at Friday’s close.
The decline in LVMH stock this year has narrowed from about 20% to 2.7%. Arnault and his family own about 245 million shares, or about 49% of the company, a July filing shows.
The beauty and fashion powerhouse has faced pressure on its revenues and profits this year, with Arnault warning of economic and geopolitical uncertainty in its second-quarter earnings release. That’s especially true in China, a key market for LVMH, which garners about 30% of its sales from Asian countries excluding Japan.
The stock has rallied this week as investors wager China’s stimulus measures — which could include rate cuts, liquidity support, reduced bank reserve requirements, and a stock stabilization fund — will juice demand for high-end items such as Louis Vuitton handbags and Dom Perignon Champagne.