Bernard Arnault surpasses Elon Musk as richest person
According to a recent article in Forbes magazine, Bernard Arnault, the founder and CEO of LVMH, has surpassed Elon Musk, the CEO of Tesla, to become the richest person in the world. The net worth of Arnault and his family increased by $23.6 billion, while Musk’s fortune stood at $204.5 billion at the time. Comparatively, the market valuation of LVMH reached $388.8 billion, while Tesla’s valuation reached $586.14 billion. As a result of the robust demand for high-end fashion products, LVMH reported a one percent increase in sales during the fourth quarter. Following the announcement of slower growth, Tesla’s share price dropped, resulting in a loss of market value of $80 billion. The first time that Arnault surpassed Musk was in December of 2022.
The Journey to Wealth
The acquisition of Tiffany & Co. by LVMH in 2021 for nearly sixteen billion dollars is widely regarded as the most significant luxury brand acquisition in history. According to Forbes, the holding company Agache, which is owned by Arnault, is a backer of a venture capital firm known as Aglaé Ventures. This firm is said to invest in companies such as Netflix and ByteDance, which is the parent company of TikTok.
LVMH Soaring Shares
The Forbes real-time billionaires list reported that Arnault and his family’s net worth increased to $207.8 billion after a $23.6 billion increase on Friday, surpassing Musk’s $204.5 billion. Arnault and his family are now the wealthiest individuals globally. On the other hand, shares of LVMH were rising dramatically on Friday, with a gain of more than 13% as of 11 a.m., following the announcement of strong sales. On Friday, the market capitalization of LVMH reached $388.8 billion, which is significantly lower than the market capitalization of Tesla, which was $586.14 billion.
The results of LVMH’s fourth quarter
The resilient demand for LVMH’s high-end fashion, which includes demand from Chinese consumers, was the driving force behind the company’s recent announcement of a 10% increase in sales for the fourth quarter. During the last three months of the year, the sales of the world’s largest luxury group, which owns multiple labels such as Louis Vuitton, Dior, and Tiffany, reached nearly 24 billion euros, which is equivalent to approximately 26 billion dollars. The fashion and leather goods division of LVMH, which includes the company’s two most prestigious labels, Vuitton and Dior, saw a 9% increase in sales during the quarter, which was slightly lower than the 10% growth that was anticipated.
