On the heels of last week’s release of LVMH 2023 Q3 and first nine months financials, the net worth of its CEO Bernard Arnault has dropped. The parent company of brands including Louis Vuitton, Dior, Celine, Fendi, Loewe, Tiffany, among others, experienced 14% organic revenue growth over the same time period (nine months) in 2022. As reported, most business lines increased sales, but at a slower rate than in past periods, particularly in the United States and China.
Read: LVMH Revenues Grow But More Slowly Based on 2023 Q3 Results
It was a trend seen in 2023’s Q2, particularly among American consumers, as economic concerns grew. What LVMH CFO Jean-Jacques Guiony referred to as the “aspirational customer” had pulled back on spending.
Read: LVMH Sales Revenues Continue to Rise in the First Half of 2023
Last week Guiony said nothing had changed for this consumer from Q2 to Q3. Overall, the results apparently spooked investors, as they fear an end to the luxury boom.
Since the Q3 report, LVMH stock lost about 2% of its value. For Arnault, whose net worth is tied to his ownership of LVMH stock, the drop caused him to fall into the number three wealthiest individual spot, behind Elon Musk and Jeff Bezos. You may recall that for much of the last couple of years, the number one spot bounced between Musk and Arnault.
Of course, given the vicissitudes and variability of stock prices, it remains to be seen for how long Arnault sits in the bronze spot. Next week other luxury companies report earnings. Positive results could boost the sector overall, including LVMH. Or not.
- Maura Carlin posted 1 year ago
- last edited 1 year ago
