In just four days, Bernard Arnault has increased his wealth by $24 billion and is on track to surpass Mark Zuckerberg as the world’s third richest person.
The luxury tycoon’s fortune increased from $177 billion to $201 billion between Monday and Thursday. The jump was spurred by a 13% increase in LVMH shares, galvanized by China’s announcement of efforts to revive its ailing economy this week.
LVMH, which owns 75 brands including as Dior, Sephora, and Tiffany & Co., saw a 2% increase in share price on Friday morning after announcing the acquisition of an indirect holding in Moncler, an Italian ski jacket maker.
Arnault, LVMH’s founder and CEO, is on track to surpass Zuckerberg on the rich list. That is, providing Friday’s stock surge holds and the Meta CEO, who is worth $202 billion as of Thursday’s close, does not make a large wealth gain before the weekend.
The “Wolf in Cashmere” has had a remarkable reversal in his fortune. In late March, he had a net worth of $231 billion, making him the world’s richest person. However, his wealth dropped by $54 billion in six months to $177 billion last week, placing him sixth on Bloomberg’s list.
Over the last four days, his enormous increase has moved him into fourth place, with a $20 billion advantage over Oracle cofounder Larry Ellison’s $181 billion valuation.
Arnault’s wealth has similarly declined this year, from $30 billion to less than $7 billion as of Thursday’s end. He is now the fourth-biggest wealth loser among the world’s 500 richest people, down from first place on the previous list.
Among the top 18 wealthiest persons, only Arnault’s net worth has decreased this year, while the others have increased by at least $17 billion and up to $73.5 billion in Zuckerberg’s case.
The decline in LVMH stock this year has reduced from approximately 20% to 5%, indicating that it is no longer at a two-year low. According to a July filing, Arnault and his family possess over 245 million shares, or roughly 49% of the corporation.
The beauty and fashion behemoth has seen revenue and profit pressures this year, with Arnault warning of economic and geopolitical instability in its second-quarter earnings report. That’s especially true in China, a significant market for LVMH, which gets roughly 30% of its revenue from Asian countries excluding Japan.
Investors believe China’s stimulus measures, including rate reduction, liquidity support, decreased bank reserve requirements, and a stock stabilization fund, will boost demand for luxury commodities like Louis Vuitton handbags and Dom Perignon Champagne.