BY AGENCY REPORTER
FRENCH fashion tycoon Bernard Arnault today crept ahead of Jeff Bezos to become the world’s richest man as his net worth climbed to $186.3billion.
The chief executive of Moët Hennessy Louis Vuitton (LVMH) saw his luxury goods firm stock increase by 0.4 per cent during the first hours of trading on Monday.
The rise pushed Arnault’s personal stake up by more than $600million and placed LVMH’s market cap at $320billion, according to Forbes.
Arnault’s overall net worth has jumped to $186.3billion, reportedly seeing him edge past Amazon CEO Jeff Bezos, who is worth $186billion, by ‘only’ $300million in the world’s rich list.
It comes just days after Arnault pushed Elon Musk, worth $147.3billion, out of his spot as the world’s second richest man after Tesla’s share price sank.
The eye-watering fortunes topping the billionaire list are composed primarily of stock holdings, meaning that their values fluctuate daily with changes in the market.
Arnault, 72, has seen his fortune jump more than $110billion in the past 14 months thanks to his French luxury goods firm LVMH, which owns the likes of Louis Vuitton, Fendi, Christian Dior and Givenchy in its portfolio of 70+ luxury brands.
In January, LVMH made a huge luxury fashion business deal after acquiring Tiffany & Co., while Arnault then promoted his son to leadership of the American jeweler.
Arnault’s fortune has jumped from just $76billion in March last year to $186.3billion as his luxury goods cooperation has profited despite the Covid-19 pandemic.
Elon Musk dropped out of his spot as the world’s second richest man after his fortune sank by $3.16billion last week, to $160.6billion.
The decrease to $147.3billion is a 32 per cent drop from its January high, according to the Bloomberg Billionaire’s Index.
Arnault’s rise in fortune comes after he acquired Tiffany & Co. for $15.8billion in January.
After the purchase, the fashion tycoon promoted his son Alexandre to the leadership team of the jewelry maker in January.
Alexandre, 29, left his previous role as CEO of Rimowa, which is also owned by LVMH, to become executive vice president at Tiffany & Co., in charge of product and communication.
Alexandre will work under Michael Burke, chairman and CEO at Louis Vuitton, the group’s biggest money spinner, who will now also chair Tiffany & Co. Anthony Ledru, head of Louis Vuitton in the US, will take over as CEO of the jeweller.
Sharing the news on Instagram earlier this year, Alexandre, who was born in France but is fluent in English, wrote: ‘Humbled, honored to join @tiffanyandco and excited to work with the teams in New York!’
Alexandre trained as an engineer, graduating from France’s Ecole Telecom ParisTech and Ecole Polytechnique. He held jobs at McKinsey & Company and KKR before joining the family business with a position at Fendi.
LVMH’s acquisition of Tiffany & Co. followed a bitter legal dispute. LVMH backed away as the COVID-19 pandemic hammered luxury goods sales, but ultimately renegotiated a discounted purchase price.
Bernard, who has five children from two marriages, has given senior LVMH roles to his four oldest children. Youngest son Jean, 23, is still a student.
Only daughter Delphine, 46, is director and executive vice president of Louis Vuitton; eldest son Antoine, 43, who married Russian supermodel Natalia Vodianova last year, is CEO of Berluti and oversees image, communications and the environment for LVMH; and third son Frédéric, 26, is CEO of Tag Heuer.
Each appointment is closely watched for signs of who their billionaire father might one day appoint as his successor.
‘Bernard Arnault is building a fair process between the Arnault siblings by testing them,’ Philippe Pele-Clamour, adjunct professor at business school HEC Paris, previously told Bloomberg. ‘That will allow them to understand if they can lead such a group.’
He also invested in Netflix back in 1999 while he also entered the yacht business and bought Princess Yachts in 2008.
– DAILY MAIL
