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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 afterTesla’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.
How Bernard Arnault made his billions
Arnault was born in France into the world of business and began his lucrative luxury career in 1971, working for the family real estate company Ferret-Savinel.
He was promoted to chairman in 1978, and remained in that role until 1984 when he was tasked with restructuring the Financière Agache holding company.
Within this role, the father-of-five strategised on developing leading luxury brands, acquiring Christian Dior as the spearhead of the new business.
LVMH was formed in 1987 under the merger of Louis Vuitton and champagne producer Moët Hennessy.
In 1989 Arnault became the majority shareholder of Moët Hennessy Louis Vuitton, a role he has held ever since.
His prestigious portfolio includes fashion labels such as Givenchy, Marc Jacobs and FENTY, luxury wines and spirits and champagne and wine brands, and perfumes and cosmetics.
LVHM owns 70+ brands and spent $3.2billion in 2019 on luxury hospitality group Belmond and acquired Tiffany & Co. for $15.8billion in January.
The company website says the LVHM model is ‘based on a long-term vision’ which ‘stimulates creativity and excellence.’
The company has around 163,000 employees and reported more than $58billion-worth of revenue in 2019.
The billionaire is married to pianist Hélène Mercier, who he shares children Alexandre, 29, and Frédéric, 26, and Jean, 23, with.
He was previously wed to Anne Dewavrin, 71, until 1990, and the pair share two children – Antoine, 43, and Delphine, 46.
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 Francebut 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.
Source: dailymail
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