Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Bernard Arnault, Luxury Emperor Who Dethroned Elon Musk As World's Richest Person

Bernard Arnault, Luxury Emperor Who Dethroned Elon Musk As World's Richest Person

With $184 billion on Thursday, Bernard Arnault and his family moved to the top of Forbes' billionaire list, knocking the Tesla, SpaceX and Twitter boss off the top spot.
Bernard Arnault -- who with his family now tops the wealth of Elon Musk -- gradually built LVMH into a global luxury empire by buying up iconic brands, sealing his reputation as a formidable and insatiable businessman.

With $184 billion on Thursday, the 73-year-old Frenchman and his family moved to the top of Forbes' billionaire list, knocking the Tesla, SpaceX and Twitter boss off the top spot.

LVMH -- the world's leading luxury group -- boasts more than 75 brands, acquired over time.

They include some of the most recognisable names in fashion and prestige goods, from Louis Vuitton and Kenzo to Moet Hennessy and Tiffany.

"An essential quality in our family is patience," Arnault acknowledged in a 2012 TV profile of him.

A decade later -- by which time LVMH's annual sales had more than doubled to over 64 billion euros ($68 billion) -- he told France's Radio Classique: "We can continue to progress -- but let's be patient. 

"No rush," he said.

The businessman has also invested in the French media, a move he described during a Senate hearing in January 2022 as "more on the patronage side".

During a hearing in the French Senate earlier this year Arnault said he had intervened to stop LVMH advertising in the Liberation newspaper, after it irked him with a front-page article.

'Invest in something promising'

Arnault was born in the northern French city of Roubaix on March 5, 1949 and joined his father's public works building company at the age of 22.

He had just left the elite Ecole Polytechnique and convinced his father to transform the construction business into real-estate development instead.

In 1981, after socialist Francois Mitterrand was elected president, Arnault left France for the United States.

On his return three years later, he bought the debt-ridden textiles company Boussac, prevailing against several serious competitors with a promise to save jobs.

However, he embarked on a drastic reorganisation of the firm, only retaining some of its businesses, including the fashion house Christian Dior.

By then, Arnault was 35 years old.

"My father was surprised when I went to see him saying: 'We're going to redirect the family group and try to invest in something more promising, Christian Dior'," the businessman recalled recently on Radio Classique.

It would be the foundation stone for his luxury empire.

LVMH was born out of the merger in 1987 of trunk-maker Louis Vuitton and the wines and spirits group Moet Hennessy.

Rivalry between the families owning the two companies aided Arnault's ascendancy and he took control of the group in 1989 after no fewer than 17 legal proceedings.

"He's a tough negotiator but unmatched, a visionary who knows how to surround himself with good people and who in the end always gets his way one way or another," Arnaud Cadart, portfolio manager at financial services firm Flornoy, told AFP.

Arnault's rise, however, has not been without some failures.

Corporate criticisms

He lost Italian fashion and leather goods house Gucci to his French rival Francois Pinault, head of the PPR group, in 1999.

Arnault also tried in vain to take over Hermes, known for its silk scarves and leather handbags, by secretly building up a stake in the firm.

He rarely speaks publicly and does not like the limelight.

When the use of private jets by celebrities was being tracked on social media earlier this year, Arnault sold the LVMH jet.

"The upshot now is that no one else can know where I'm going because I lease planes," he said on Radio Classique.

"It's the French businessman's lot to embody -- sometimes in a totally unjustified way -- the criticisms of the day since the mindset has for a few years now been a bit anti-corporate," he lamented on France 2 in 2016.

That same year he was skewered in a satirical documentary entitled "Merci Patron!" (Thank you Boss!) by filmmaker and now politician Francois Ruffin, who often has Arnault in his crosshairs.

Obama, Putin, Trump, Macron...

Last year, LVMH paid a 10-million-euro fine to settle a case as part of a probe into spying.

Arnault abandoned his bid to secure Belgian nationality in 2013 issuing a mea culpa after it whipped up a storm of controversy which rumbled on for months amid public debate over the tax arrangements of the wealthy.

In 2011, he was received at the White House by president Barack Obama; Russian President Vladimir Putin welcomed him to Moscow five years later; former French president Francois Hollande cut the ribbon on his Louis Vuitton Foundation, while Donald Trump did the same for a Vuitton workshop in Texas.

And when the historic Samaritaine department store, owned by LVMH, reopened last year, French President Emmanuel Macron was a guest at the inauguration.

In Japan, China and the Middle East, the luxury mogul has access to top leaders.

Arnault has five children, all of whom work for LVMH, but shows little sign of slowing down -- or handing over the reins just yet.

Every week he makes a point of touring all the group's Paris-based companies.

At its last general meeting, the age limit for his role as LVMH chief executive was extended to 80 years old, ensuring the luxury conglomerate stays in family hands.

Married to a pianist and art lover, Arnault also created the Louis Vuitton Foundation, one of Paris' most prestigious exhibition locations for contemporary art.
Newsletter

Related Articles

0:00
0:00
Close
Netanyahu's Firm Stance Amid Rafah Hostage Talks
New UK Laws: Banning Weak Passwords for Internet-Connected Devices to Enhance Cybersecurity
Spanish Prime Minister May Announce Resignation
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Orban: Destroy Liberal World Order - Predicts End This Year
Diplomatic Tensions: Sunak Clashes with Macron Over Rwanda Plan
A Jewish woman was kidnapped and raped in Gennevilliers (a suburb in western Paris), France, on the background of hatred for Israel
Russia: Deputy Defense Minister Arrested on Suspicion of Taking Bribes
Stanford Researchers Discover Child Abuse Material in AI Image Generator Dataset: Can Regulations Prevent Explicit Deepfakes of Children?
Record-Breaking 'Extreme Heat Stress' Days in Europe's Contrasting 2023 Summer: A Health Threat
Thousands Evacuated: 1,000-Kg NATO Bomb Removed from Serbian City
European Car Sales Drop 5.2% in March: Electric Vehicles Face Challenges Amidst Market Downturn and High Prices
Urgent Call from William Burns as Kyiv Braces for Russian Summer Offensive.
IMF Boosts Russia's 2024 Economic Growth Forecast to 3.2%
BOEING WHISTLEBLOWER: THE MAX AIRPLANE IS NOT SAFE!!!
Creative menu of a Pizza restaurant..
The communists couldn’t ban us and neither could the Brussels bureaucrats. The second day of the NatCon Talk conference is underway.
You can be a very successful player, but a player with character is another level!
Resumption of Controversial NatCon 2024 Conference in Brussels
The 60 Minutes journalists went to Sweden to show us the wonderful world of diversity and integration but they were threatened, beaten and chased away by diversity itself.
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
China's Economy Surges Ahead with 5.3% GDP Growth in Q1 2024, Boosted by High-Tech Manufacturing
Brussels Venue Cancels Right-Wing Conference: Free Speech Crisis as Concert Noble Drops NatCon Event
The West stands with Israel, Iran is furious: "Double standards and irresponsibility"
Here is a robot that can clean the river in Siem Reap.
Play stupid games, win stupid prizes
Hungarian PM Viktor Orbán: "We condemn last night's attack against Israel, and pray for the safety of the Israeli people."
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Germany and France Experience Decreased Inflation in March: Food and Energy Prices Drop
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
The Finnish government plans to cut pensions and tax hikes to fill a hole in the 2025 budget
EU Parliament Approves New Migration Pact: Faster Asylum Process, Mandatory Solidarity, and Tightened Border Controls
Women's Rights Group Highlights Impact of Sexual Harassment on German Statues
European Court Rules Climate Inaction Violates Human Rights: Historic Victory for Swiss Elderly Women
Europe's Skills Crisis: 75% of Employers Struggle to Find Workers with the Right Qualifications (2023)
Czech Government Commits €6B to New Nuclear Reactors for Decarbonisation
France to Implement €5 Fine for Missed Medical Appointments: Prime Minister's Plan to Boost Healthcare System Amid Staff Shortages and Aging Population
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
Former Fidesz Insider Péter Magyar Leads Massive Anti-Government Protest in Budapest: 'Change Can't Be Stopped'
Slovak Presidential Election: PM Fico's Proxy Wins, Giving Coalition Full Control
Apple Modifies App Store Rules to Allow EU Music Apps to Offer External Payments
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Monty Python were so ahead of their time
If there's a will, there's a way!
×