LVMH's Bernard Arnault set to overtake Mark Zuckerberg as the world's 3rd-richest person after $24 billion wealth surge
- Bernard Arnault's net worth has soared by $24 billion in four days to $201 billion.
- The LVMH CEO is set to leapfrog Mark Zuckerberg and become the world's third-richest person.
Bernard Arnault has grown $24 billion richer in four days — and looks set to overtake Mark Zuckerberg as the world's third-richest person.
The luxury tycoon's fortune ballooned from $177 billion to $201 billion between Monday and Thursday. The surge was fueled by a 13% 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. — climbed another 2% on Friday morning after the company announced its purchase of an indirect stake in Moncler, the Italian label famous for its ski jackets.
Arnault, LVMH's founder and CEO, is now poised to leapfrog Zuckerberg on the rich list. That's assuming Friday's stock move holds and the Meta CEO, worth $202 billion at Thursday's close, doesn't notch a significant wealth gain before the weekend.
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 over the last four days has propelled him into fourth place, with a $20 billion lead over Oracle cofounder Larry Ellison, who is worth $181 billion.
Arnault's wealth decline this year has also shrunk from $30 billion to below $7 billion at Thursday's close. He's now the fourth-biggest wealth loser among the world's 500 richest people, instead of no.1 on the unflattering list.
Even so, Arnault remains the only one of the top 18 wealthiest individuals who's seen their net worth drop this year: all of the others are up at least $17 billion and as much as $73.5 billion in Zuckerberg's case.
The decline in LVMH stock this year has narrowed from about 20% to 5%, meaning it's no longer languishing at a two-year low. 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.