How Bernard Arnault of LVMH Moet Hennessy Louis Vuitton Lost $1.7 Billion

Multi-billionaire Bernard Arnault, who oversees the LVMH empire of 75 fashion and cosmetics brands, saw about $1.7 billion of his $182.5 billion fortune wiped out over the last few days. It’s not as if he’s greatly concerned by that.  But still, it’s a hit worth paying attention to.

All after shares of LVMH Moet Hennessy Louis Vuitton (OTC:LVMUY) lost another 1% of its value following a drop from about $160 to $141.

Key Points About This Article 

• Bernard Arnault, who oversees the LVMH empire of 75 fashion and cosmetics brands, saw about $1.7 billion of his $182.5 billion fortune wiped out.
• Most of that is because of poorly received fourth quarter earnings. Not only was the company’s revenue of 23.9 billion euros, or $25.1 billion, flat year over year, but its full year earnings of 84.7 billion euros, or $88.8 billion, were down 2% year over year.
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LVMH Earnings Weren’t So Hot

Most of that is because of poorly received fourth quarter earnings. Not only was the company’s revenue of 23.9 billion euros, or $25.1 billion, flat year over year, but its full year earnings of 84.7 billion euros, or $88.8 billion, were down 2% year over year. Its fashion and leather goods business slipped by 3% to 41 billion euros, or $43 billion. Wine and spirits dropped about 11% year over year to 5.8 billion euros, or $6.1 billion.

While analysts were looking for a larger pullback in revenues, the better than expected numbers still weren’t encouraging – especially with a double-digit drop in profitability.

However, in an attempt to spin the news, Arnault did add:

“In 2024, amid an uncertain environment, LVMH showed strong resilience. This capacity to weather the storm in highly turbulent times – already illustrated on many occasions throughout our Group’s history – is yet another testament to the strength and relevance of our strategy,” as quoted in a company press release.

While its brands are resilient, investors want to see more growth, higher sales, and greater profitability moving forward. When they didn’t see that in the latest LVMH earnings report, they sent the stock lower, along with Arnault’s fortune.

Chinese Consumers Turned Their Backs on Upscale Fashion

Not helping, the stock was recently downgraded by Stifel to a hold rating, citing various headwinds across the company’s segments. We also have to consider that LVMH’s China market isn’t as strong as it once was. That’s because Chinese consumers have turned their backs on upscale fashion, especially with the country’s economic issues.

“Wealthy Chinese consumers also shifted perspective, preferring to invest their money in high-end property or experiences instead of the latest fashions,” added Fortune.com.

However, Weakness in LVMH Could be an Opportunity

After dropping from $160 to $149, the stock became technically oversold. Plus, analysts are turning bullish again on LVMH. HSBC analysts, for example, “argue that 2025 may finally mark a turning point for luxury, and LVMH in particular, and the market will react swiftly to any sign that sales have bottomed. If that’s the case, then it makes sense to buy the stock ahead of the results, leading him to reiterate a Buy rating and raise his price target by €20 to €747 (about $765),” as noted by Barron’s.

Plus, Bernard Arnault just bought $100 million worth of his stock over the last two months.

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