Jérémy Barande, CC-BY-SA-2.0 via Wikimedia Commons
Who is Bernard Arnault?
Best known for being France’s premier luxury fashion tycoon, Bernard Jean Étienne Arnault, born in 1949, is also a collector of fine art, a philanthropist, and, according to many of those he has crossed paths with in his 50+ year career, a shrewd and at times ruthless businessman.
Arnault certainly stepped on some toes during his crusade to grow his fashion empire into the largest in the world, starting by laying off 9,000 workers over two years after acquiring Boussac Saint-Frères, the Christian-Dior parent company would eventually merge with Louis Vuitton in the late 80s. These mass layoffs earned Arnault the nickname “The Terminator,” and over the years that followed, he gathered even more intimidating monikers, including “The Great Predator of Luxury,” “The Pope of Fashion,” and “The Wolf in the Cashmere Coat.”
By 2023, Arnault had grown his empire, known as Moët Hennessy Louis Vuitton, or just LVMH, to include around 75 luxury brands under about 60 different subsidiaries, cementing himself as one of the world’s wealthiest business moguls.
How much is Bernard Arnault worth in 2023? Is he the richest person in the world?
As of this article’s last update (September 8th, 2023), Arnault’s net worth stood at $196 billion, making him the second richest person in the world after Tesla CEO Elon Musk, whose wealth stood at $251.1 billion on that day.
For much of 2023, however, Arnault and Musk were neck-in-neck for the number-one spot. In late April 2023, Arnault had a solid lead, boasting $241.1 billion compared to Musk’s $167.4 billion, according to Forbes. Since the bulk of both individuals’ wealth comes from their stakes in their companies—LVMH and Tesla—their net worths have fluctuated frequently and dramatically, with each occasionally overtaking the other.
As of early September 2023, LVMH, in which Arnault had a 41.4% stake (via a 97.5% stake in Christian Dior), had a market capitalization of around $397.26 billion.
Where did Bernard Arnault’s money come from? How did he get rich?
Bernard Arnault was never poor. His father owned a civil engineering company, and he was able to attend the École Polytechnique, France’s top engineering school, graduating in 1971.
While he certainly built his monied legacy through his fashion empire, Arnault’s first foray into business, which helped fund his leap into the luxury textile industry, was at his father’s civil engineering company, Ferret-Savinel. After joining the firm, Arnault persuaded his father to shift the business’ pursuits into the real estate industry. He went on to lead the company (which was later renamed Ferinel), first as CEO and later as chairman.
In 1984, Arnault partnered with investment firm Lazard Frères to finance the purchase luxury brand Financière Agache, becoming the company’s CEO. From there, he won a bidding war for Boussac Saint-Frères, a bankrupt conglomerate whose only profitable subsidiary was Christian Dior, the foundation upon which Arnault would build his fashion armada.
Once it was his, Arnault liquidated most of Boussac’s assets and laid off the bulk of its workforce, keeping only Christian Dior and department store Le Bon Marché. In 1987, he joined forces with Louis Vuitton president Henry Racamier to form LVMH. Over the next few years, Arnault scooped up more and more LVMH stock until he became its largest shareholder. By early 1989, he owned 43.5% of the company’s shares and held 35% of its voting rights.
At this point, he used his influence to push Racamier, with whom he created LVMH, out of the company’s board of directors, assuming the roles of chairman and CEO. Over the subsequent decades, Arnault went on an acquisition spree, buying businesses both inside and outside the fashion industry and bringing them under the LVMH umbrella. During the 90s alone, LVMH took over Berluti, Kenzo, Guerlain, Loewe, Marc Jacobs, Sephora, and Thomas Pink. Notable 2000s acquisitions included Fendi, DKNY, La Samaritaine, and Princess Yachts.
By 1997, Arnault was worth around $3.6 billion. By 2005, his net worth had grown to over $20 billion. The 2010s saw his fortune fluctuate between around $30 and $75 billion, but before the decade was over, he had officially joined the $100 billion club alongside the ranks of tech magnates like Jeff Bezos and Bill Gates. The subsequent COVID-19 pandemic was a boon for the luxury fashion industry, and by mid-2021, Arnault’s net worth reached $186 billion as LVMH shares skyrocketed.
As of September 2023, LVMH shares were trading around mid-2021 levels, and Arnault’s net worth was a bit shy of $200 billion.
What brands does Arnault own?
LVMH, which Arnault owns a little over 40% of, is the parent company of about 75 brands across several industries. Some of the most notable in each category are listed below:
| Fashion and leather | Jewelry and watches | Fragrance and cosmetics | Luxury retail | Wine and spirits |
|---|---|---|---|---|
Louis Vuitton |
Tiffany & Co. |
Acqua di Parma |
La Samaritaine |
Belvedere |
Christian Dior |
Chaumet |
Guerlain |
Le Bon Marché |
Dom Pérignon |
Marc Jacobs |
Bulgari |
Fenty Beauty by Rihanna |
La Grande Epicerie |
Hennessy |
Fendi |
TAG Heuer |
Maison Francis Kurkdjian |
Sephora |
Château Cheval Blanc |
Givenchy |
Zenith |
Perfumes Loewe |
DFS |
Chateau d’Esclans |
https://commons.wikimedia.org/wiki/File:Bernard_Arnault_and_Vladimir_Putin.jpg
What is Bernard Arnault’s salary as CEO of LVMH?
LVMH’s 2020 annual report stated that Arnault was paid €8.2 million ($9.7 million) in salary, bonuses, and benefits.
How does Arnault spend his money?
In addition to collecting companies, Arnault is known for collecting works of fine art, including pieces by Pablo Picasso, Yves Klien, Henry Moore, Jean-Michel Basquiat, and Andy Warhol. He has also used his massive wealth to purchase a number of other luxury items. In terms of transportation, he owns a superyacht named Symphony, along with a Dassault Falcon 7X, a $40 million private jet.
The billionaire also keeps a 135-acre private island in the Bahamas, along with a house in Paris, a waterfront chateau in Saint-Tropez, and multiple homes in and around Los Angeles.
