French luxury goods tycoon Bernard Arnault has exited the top 10 list of the world’s largest fortunes, resulting in an all-American lineup predominantly composed of technology billionaires leading the rankings. Arnault’s net worth fell to $143 billion, according to the Billionaires Index, placing the LVMH founder below Warren Buffett, the 96-year-old philanthropist and chairman of Berkshire Hathaway Inc. Elon Musk dominates the rankings with a substantial fortune of $918.8 billion, trailed by notable figures in the technology sector such as Larry Page, Jeff Bezos, Sergey Brin, and Michael Dell. For the first time since the inception of the wealth index in 2012, all ten positions at the top are occupied by individuals from the United States.
Arnault’s decline has been particularly notable since the beginning of the year, with the 77-year-old experiencing a decrease in his fortune by $65 billion, the largest drop among the 500 wealthiest individuals. The conflict in West Asia has adversely affected his businesses, leading to a decline in demand within shopping centers like Dubai for LVMH brands, which include fashion labels such as Dior, Louis Vuitton, and Tiffany, as well as premium alcoholic beverages like Dom Perignon champagne and Hennessy cognac. It has encountered obstacles in China, a crucial market where its trademark dispute with a domestic tea producer has adversely affected sales. LVMH Moët Hennessy Louis Vuitton SE shares experienced a 0.5 percent increase during early trading in Paris on Friday. The previous day, it was briefly surpassed by L’Oreal SA as the entity with the largest market capitalisation in France.
Meanwhile, the S&P 500 Index of US stocks has rallied 11 per cent this year, with tech companies helping drive those gains on AI-related demand. Arnault has consistently ranked among the 10 wealthiest individuals since March 22, 2017, with a temporary fluctuation in the top position starting in December 2022. He was the first individual from outside North America – and the sole consumer mogul – to attain the apex, and none have succeeded him since. That achievement occurred during a markedly different period for the luxury sector, when Chinese consumers were the primary force behind sales, and firms such as LVMH capitalised on the surge in shopping demand that ensued after the pandemic’s limitations.
The company’s stock reached a record in April 2023 but has since experienced challenges due to sluggish product demand in regions such as China, the uncertainty stemming from US tariffs, and declining alcohol consumption in certain markets. His fortune is now positioned just above that of Walmart Inc.’s second-generation heir, Jim Walton. Succession represents a significant challenge for Arnault, particularly concerning his five children from two marriages, all of whom are involved in the luxury company. In April, for the first time, all parties addressed a shareholders’ meeting, during which Arnault skilfully sidestepped enquiries regarding his successor as chief executive officer.
