Amid the Coronavirus pandemic, Bernard Arnault, the richest man in Europe and the world’s third-richest billionaire, has incurred an extraordinary loss of $30 billion, making him the individual with the largest monetary setback globally.
The 71-year-old Frenchman serves as the chairman and CEO of the esteemed luxury conglomerate LVMH Moët Hennessy, which manages a portfolio of 70 luxury brands, including Louis Vuitton and Sephora.
As the global economy grapples with the effects of the pandemic, LVMH shares have witnessed a 19% decline in the span of a year, as reported by Bloomberg.
This plunge has resulted in Arnault’s net worth plummeting by a staggering $30 billion according to the Bloomberg Billionaires Index, surpassing the losses of any other individual in the world.
Reportedly, by May 6, the businessman had suffered a monetary decline equivalent to the amount gained by Jeff Bezos, the chairman of Amazon.com Inc, as stated by the news outlet.
Currently, Arnault’s net worth stands at $77 billion, as per the regularly updated Index.
Furthermore, Arnault is anticipated to make a payment of $16 billion following a deal struck in November last year for the acquisition of the jewelry group Tiffany & Co, which is considered the largest luxury acquisition to date, as per Bloomberg.
LVMH intends to reduce its capital expenditure by up to 35%, leading to the postponement of certain store openings and renovations, Bloomberg revealed. Additionally, Arnault and four other executives were reported to have waived their salaries for April and May in light of the pandemic.
Despite these challenges, both LVHM officials and industry experts have expressed confidence in the entrepreneurial acumen of Arnault, describing him as a “highly-successful risk taker” who is equipped to weather the storm.
According to Jean-Jacques Guiony, LVMH’s chief financial officer, “We are very much long-term oriented. In a crisis, a lot of people say things will never be the same, but we are still confident.”
Former LVMH chairman Pauline Brown remarked to Bloomberg, “You could divide the world’s top billionaires into highly successful risk managers and highly successful risk-takers; Arnault is a highly successful risk-taker. When he feels momentum and long-term potential, he uses the resources he has to go after it aggressively.”