Elon Musk has retaken the title of world’s wealthiest person.The Tesla Inc. chief executive officer surpassed luxury tycoon Bernard Arnault on Wednesday after shares of Arnault’s LVMH fell 2.6% in Paris trading.
Musk and the 74-year-old Frenchman have been neck-and-neck for the top spot this year in the Bloomberg Billionaires Index, a listing of the world’s 500 richest people. Arnault first surpassed Musk in December as the tech industry struggled and luxury showed resilience in the face of inflation. LVMH, which Arnault founded, owns brands including Louis Vuitton, Fendi and Hennessy. Faith in the luxury sector’s buoyancy is starting to fade amid mounting signs of slowing economic growth, particularly in the critical market of China. LVMH shares have tumbled about 10% since April, at one point wiping $11 billion from Arnault’s net worth in a single day.
Musk, meanwhile, has gained more than $55.3 billion this year, largely due to Tesla. The Austin-based automaker — which comprises 71% of his fortune — has rallied 66% year-to-date.
Tag: LVMH
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Musk overtakes Bernard Arnault to become world’s richest person again
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Bernard Arnault, world’s richest man, names daughter as Dior chief
French billionaire Bernard Arnault announced Wednesday, January 11, that his daughter Delphine would head his LVMH luxury empire’s Dior fashion house in a leadership shuffle also featuring a new CEO at flagship brand Louis Vuitton. The shake-up at LVMH’s two leading brands came as Arnault has seen his wealth soar to new heights, overtaking Tesla and Twitter chief Elon Musk as the world’s top billionaire late last year.
Bernard Arnault said the appointment of Delphine, a top executive at Louis Vuitton, as head of Christian Dior Couture is the “continuation of a career of excellence in fashion and leather goods”.
Under her direction, Louis Vuitton was able to “fly from record to record” and her “sharp eye and incomparable experience will be decisive assets in the continued development of Christian Dior”, Arnault said in a statement.
She will succeed Pietro Beccari, who will replace Michael Burke as head of Louis Vuitton, the world’s leading luxury brand in terms of sales, famous for its handbags bedecked with the initials “LV”.
Bernard Arnault praised Beccari for his “exceptional work” as head of Dior over the past five years.
“Nobody doubts that he will lead Louis Vuitton towards even greater desirability and success,” he said.
Arnault also congratulated Burke for his “great job” during 10 years at the helm of Vuitton, which helped to “widen the gap with our competition”. Burke will take up a new position alongside Bernard Arnault.
Arnaud Cadart, portfolio manager at the Paris-based asset management firm Flornoy, said the appointments of Beccari and Delphine Arnault were “clear signs of trust” and a “desire to keep a balance between outside people and Arnault family members”. Beccari, who joined LVMH in 2006, is taking over a “strategic house” while Delphine Arnault is heading “another jewel of the group”, Cadart said.
Delphine Arnault has “proven herself by doing a big and good job at Vuitton”, he said, calling the move a “major appointment”. The management changes will be effective on February 1.
Arnault, 73, overtook Musk on the Forbes and Bloomberg lists of the world’s top billionaires late last year, with Forbes putting the clan’s net worth at $200 billion. Arnault’s five children all have top jobs at LVMH.
Delphine Arnault has been executive vice president at Louis Vuitton since 2013, supervising the brand’s product-related activities. Previously, she served as deputy managing director at Christian Dior Couture.
Source: AFP