Bernard Arnault, the chairman and chief executive of LVMH, the world’s largest luxury goods company, has amassed a fortune that positions him among the wealthiest individuals globally. As of now, Bernard Arnault’s net worth is an astonishing $202 billion. This article delves into the details of his earnings, the historical context of his wealth accumulation, and the intricacies of his financial empire.
Bernard Arnault’s Net Worth: An Overview
Bernard Arnault’s immense fortune primarily stems from his leadership at LVMH (Moët Hennessy Louis Vuitton), a conglomerate of luxury brands. In the 1980s, Arnault acquired Christian Dior out of bankruptcy, using its profits and increased valuation to build a conglomerate that includes iconic brands such as Louis Vuitton, Moët, Hennessy, Marc Jacobs, Givenchy, Tag Heuer, Bulgari, and Tiffany & Co. Today, LVMH encompasses around 60 brands and generates approximately $70 billion in annual revenue. The market cap of LVMH is currently $384 billion.
Arnault and his extended family own 97% of Dior directly, and Dior owns 41% of LVMH. Additionally, the Arnault family owns an extra 7% of LVMH directly, giving them more than 50% of the total voting rights. Outside of LVMH, Bernard Arnault’s personal investments include two wineries in France, Princess Yachts, 5% of Carrefour (France’s largest supermarket chain), and a multi-billion-dollar art collection featuring works by Picasso and Warhol.
Wealth Milestones and Historical Context
Bernard Arnault’s journey to becoming one of the richest individuals in the world began in the 1980s. After acquiring Christian Dior, he strategically used its value to create LVMH. In June 2019, Arnault’s net worth exceeded $100 billion for the first time, making him the third-richest person globally. By July 2019, his net worth had reached $108 billion, placing him as the second-richest person ahead of Bill Gates. In December 2022, Arnault became the richest person on the planet when his net worth surpassed Elon Musk’s $168 billion, reaching $171 billion. In April 2023, LVMH’s soaring stock pushed his net worth above $200 billion for the first time, making him only the third person in history to achieve this milestone without adjusting for inflation.
Early Life and Career
Bernard Jean Étienne Arnault was born on March 5, 1949, in Roubaix, France. His father, Jean Léon Arnault, was a manufacturer and a graduate of École Centrale Paris, while his mother, Marie-Josèphe Savinel, was the daughter of Étienne Savinel, who owned the civil engineering company Ferret-Savinel. In 1950, Étienne Savinel passed on the management of Ferret-Savinel to Jean Léon Arnault, who later gave him ownership of the company.
Arnault graduated from France’s top engineering school, École Polytechnique, in 1971. Following his graduation, he joined his father’s company, Ferret-Savinel, and became its president in 1978. Under his leadership, the company shifted focus from construction to real estate, a move that proved highly successful.
Acquiring Luxury Brands and Creating LVMH
In 1984, Bernard Arnault acquired the luxury goods company Financiere Agache with the help of Antoine Bernheim. He became CEO of Financiere Agache and took over the textile company Boussac Saint-Freres out of bankruptcy. Boussac owned several brands and stores, including Christian Dior and Le Bon Marché. Arnault sold all of Boussac’s assets except Dior and Le Bon Marché, which laid the foundation for his luxury goods empire.
Using the profits and increased value of Dior, Arnault embarked on a luxury brand shopping spree. In 1987, he formed LVMH, an umbrella company merging Louis Vuitton and Moët Hennessy. By 1989, he had invested a total of $2.6 billion to gain control of 43.5% of LVMH’s shares and 35% of its voting rights, cementing his position as the largest shareholder. Under Arnault’s leadership, LVMH experienced massive growth, with sales and profits increasing fivefold and the company’s market value multiplying by 15.
Despite owning a large number of brands (75 as of June 2020), Arnault has promoted a decentralized approach, allowing each brand to maintain its unique identity and history. Some notable acquisitions include Céline, Berluti, Kenzo, Guerlain, Loewe, Marc Jacobs, Sephora, Thomas Pink, Emilio Pucci, and Fendi.
Other Investments and Interests
Beyond LVMH, Bernard Arnault has diversified his investments across various industries. Between 1998 and 2001, through his holding company Europatweb, he invested in several web companies, including Boo.com, Libertysurf, and Zebank. Through his investment firm Groupe Arnault, he invested in Netflix in 1999. In 2007, Arnault, along with California property firm Colony Capital, acquired a 10.69% stake in Carrefour.
Arnault is also involved in the yacht business, having spent €253 million to buy Princess Yachts in 2008. He also acquired control of Royal van Lent for nearly the same amount. His interest in art is reflected in his extensive collection, which includes works by Picasso and Warhol. LVMH has sponsored numerous artistic exhibitions in France, showcasing these and other renowned artists.
Personal Life and Philanthropy
Bernard Arnault married Anne Dewavrin in 1973, and they had two children before separating in 1990. He later married Canadian concert pianist Hélène Mercier, with whom he has three children. Following the devastating fire at Notre Dame Cathedral in Paris in 2019, Arnault and his family pledged €200 million to aid in its repair and restoration.
Conclusion
Bernard Arnault’s net worth of $202 billion underscores his status as one of the wealthiest individuals in the world. His strategic acquisitions and leadership at LVMH have built a luxury goods empire that continues to thrive. Arnault’s diversified investments, art collection, and philanthropic efforts further demonstrate his influence and commitment to various fields. As LVMH and its portfolio of brands continue to grow, Bernard Arnault’s financial legacy remains firmly established.
