French luxury businessman Bernard Arnault is poised to see a significant drop in his fortune, potentially by several billion dollars.
Nearly half of Arnault’s wealth is tied to his stake in LVMH-Moët Hennessy Louis Vuitton LVMHF, which saw a nearly 5% decline in over-the-counter shares after earnings fell short of expectations.
The tycoon’s losses could now enable Meta Platforms Inc. META CEO Mark Zuckerberg to inch further closer to Arnault’s position as the third-richest person in the world, according to Bloomberg’s billionaires ranking.
World’s Top 10 Richest Billionaire
| Rank | Name | Total net worth |
| 1 | Elon Musk | $257B |
| 2 | Jeff Bezos | $206B |
| 3 | Bernard Arnault | $193B |
| 4 | Mark Zuckerberg | $170B |
| 5 | Bill Gates | $159B |
| 6 | Larry Page | $159B |
| 7 | Larry Ellison | $154B |
| 8 | Steve Ballmer | $151B |
| 9 | Sergey Brin | $149B |
| 10 | Warren Buffett | $137B |
See Also: Here’s Why Bernard Arnault Ditched Plans To Build A Luxury Hotel In Beverly Hills
LVMH Misses Street Estimates
In the first half of 2024, LVMH reported revenue of $44.64 billion. It fell short of estimates by about 1.4%. Earnings per share were reported at $16.01, below the anticipated $16.365.
These figures have raised concerns about the luxury sector, which is often seen as recession-proof but now shows signs of vulnerability.
"The results for the first half of the year reflect LVMH's remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty,” said Arnault, chairman and CEO of LVMH.
He added, “In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games… the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”
Wines & Spirits Struggle, Watches & Jewelry Under Pressure
The Wines & Spirits division experienced a 9% organic revenue decline in the first half of 2024, with profit from recurring operations down 26%.
This decline was driven by decreased Champagne sales and weak local demand for Hennessy cognac in China, reflecting broader challenges in key markets.
The Watches & Jewelry division also faced difficulties, with a 3% organic revenue decline and a 19% drop in profit from recurring operations, significantly impacted by exchange rate fluctuations. Despite these challenges, Tiffany & Co. continued to shine with its iconic lines and a new campaign that received a warm reception.
The new Tiffany Titan collection by Pharrell Williams generated exceptional interest, highlighting the brand’s ability to innovate and attract new audiences.
TAG Heuer, on the other hand, strengthened its ties with motorsports through the successful relaunch of its historic Formula 1 collection, showing resilience in its niche market.
The Perfumes & Cosmetics division recorded a 6% organic revenue growth in the first half of 2024. This growth was driven by the ongoing success of its flagship lines. Christian Dior delivered a robust performance across all product categories, reinforcing its leadership position in strategic markets.
Sauvage maintained its status as the world's leading fragrance, while J'adore continued to thrive.
The new Miss Dior Parfum edition also achieved strong growth, showcasing the brand’s enduring appeal and innovative marketing strategies.
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