The Coronavirus pandemic has caused Bernard Arnault, the wealthiest man in Europe and the third-richest billionaire globally, to suffer a remarkable $30 billion loss, making him the biggest loser in the world during this crisis.
The 71-year-old Frenchman is the chairman and CEO of LVMH Moët Hennessy, a prestigious luxury empire overseeing a portfolio of 70 luxury brands including Louis Vuitton and Sephora.
Amid the global economic downturn due to the pandemic, LVMH shares plunged by 19% in a year, as reported by Bloomberg.
This has led to a staggering drop in Arnault’s net worth by $30 billion, according to the Bloomberg Billionaires Index, making him the individual who has suffered the most during this period.
As of May 6, his net worth was reported to be $77 billion, constantly updated by the Index.
Furthermore, Arnault is obligated to pay out $16 billion following a deal made in November last year for the acquisition of the jewellery group Tiffany & Co, which is believed to be the largest luxury acquisition ever, as per Bloomberg. LVMH also intends to decrease its capital expenditure by up to 35%, delaying some store openings and renovations. Additionally, Arnault and four other executives have opted to forgo their April and May salaries due to the pandemic.
Nevertheless, both LVMH officials and industry experts express confidence in Arnault’s ability to weather the storm, describing him as a “highly successful risk-taker.”
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 also remarked, “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.”