Bernard Jean Étienne Arnault is a prominent figure in the world of business, known for his entrepreneurial success, investment prowess, and passion for art. As the founder, chairman, and CEO of LVMH Moët Hennessy Louis Vuitton, the largest luxury goods company globally, Arnault has amassed a significant fortune. With an estimated net worth of $230 billion as of July 2023, he ranks among the wealthiest individuals worldwide. This article delves into the life and achievements of Bernard Arnault, exploring his early years, business ventures, art collection, personal life, and wealth.
Early Life And Background
Bernard Arnault was born on March 5, 1949, in Roubaix, France, Bernard Arnault grew up in a family with a background in engineering and manufacturing. His father, Jean Léon Arnault, owned a civil engineering company, while his mother, Marie-Josèphe Savinel, had a strong affinity for the fashion brand Dior. Raised in a strict Catholic-Auvergne household, Arnault received a classical education and took piano lessons during his childhood. He attended elite Catholic schools, shaping his upbringing with a blend of academic excellence and artistic appreciations.
Bernard Arnault Career
1971-1987: Professional start
Bernard Arnault began his career in 1971 at Ferret-Savinel, a company owned by his father. He worked his way up and became the president of the company from 1978 to 1984. In 1984, Arnault convinced his father to shift the focus of the company to real estate and renamed it Ferinel. He later sold the industrial construction division and renamed the real estate branch to the George V Group. The real estate assets were eventually sold to Compagnie Générale des Eaux (CGE), which later became Nexity.
1987-1989: Co-founding and acquisition of LVMH
In 1987, Arnault co-founded LVMH (Moët Hennessy Louis Vuitton) with Alain Chevalier, CEO of Moët Hennessy, and Henry Racamier, president of Louis Vuitton. In 1988, Arnault formed a holding company with Guinness that held 24% of LVMH’s shares. He then acquired more shares to become LVMH’s largest shareholder. Arnault took control of LVMH and became its chairman of the executive management board in 1989.
1989-2001: LVMH Initial expansion and growth
Under Arnault’s leadership, LVMH underwent an ambitious development plan and became one of the largest luxury groups in the world. Arnault acquired several luxury brands, including Céline, Christian Lacroix, Berluti, Kenzo, Guerlain, Loewe, Marc Jacobs, Sephora, Thomas Pink, Emilio Pucci, Fendi, DKNY, and La Samaritaine. He also invested in the development of LVMH’s presence in the United States with the construction of the LVMH Tower in New York. In 2001, Arnault engaged in a high-profile takeover battle with Gucci, which resulted in a settlement that earned LVMH a significant profit.
2001-present: Increasing success and profitability
Arnault continued to lead LVMH to further success and profitability. He expanded the company’s portfolio with acquisitions such as Bulgari, QDA, Marco De Vincenzo, and Christian Dior haute couture. LVMH’s sales and profit continued to rise, and the company’s market value increased significantly. In 2017, LVMH achieved record sales of €42.6 billion and a net profit increase of 29%. Arnault planned to acquire Tiffany & Co. in 2019, but the deal faced complications due to the COVID-19 pandemic. After a legal battle, LVMH completed the purchase of Tiffany in January 2021.
Arnault’s leadership has transformed LVMH into the largest company by market capitalization in the eurozone, with a market value of €313 billion as of May 2021. He has implemented strategies to decentralize the group’s brands, allowing them to maintain their independence while benefiting from the resources and support of LVMH. Through his career, Arnault has established himself as a prominent figure in the luxury industry and has played a significant role in shaping the success of LVMH.
Business Ventures and LVMH
Arnault’s entrepreneurial journey began with his acquisition of the bankrupt textile company Boussac in 1984. This move allowed him to gain control over the luxury brand Christian Dior. Subsequently, he transformed the company and established it as a leading player in the luxury goods industry. Arnault’s strategic vision and business acumen led to the creation of LVMH Moët Hennessy Louis Vuitton, a conglomerate that encompasses numerous prestigious brands, including Louis Vuitton, Moët & Chandon, Hennessy, Givenchy, Fendi, and many others. Under Arnault’s leadership, LVMH became the world’s largest luxury goods company, setting new standards in the industry.
Art Collection and Patronage
Beyond his business ventures, Bernard Arnault is renowned for his extensive art collection and patronage of the arts. His collection includes masterpieces by iconic artists such as Picasso, Yves Klein, Henry Moore, and Andy Warhol. Arnault’s passion for art led him to establish LVMH as a significant supporter of the arts in France. He initiated the LVMH Young Fashion Designer competition, providing grants and mentorship to talented students from fine arts schools. Additionally, Arnault played a pivotal role in the building project of the Louis Vuitton Foundation, a remarkable architectural masterpiece designed by Frank Gehry. The foundation, dedicated to contemporary art, opened its doors in 2014 at the Jardin d’Acclimatation in Paris.
Bernard Arnault’s Personal Life And Family
Bernard Arnault has been married twice. His first marriage was to Anne Dewavrin in 1973, with whom he had two children, Delphine and Antoine. They separated in 1990. In 1991, Arnault married Hélène Mercier, a Canadian concert pianist, with whom he has three sons: Alexandre, Frédéric, and Jean. All five of his children, along with his niece Stephanie Watine Arnault, hold official roles within the brands controlled by Arnault. Delphine, in particular, has taken on the role of CEO of the luxury brand Dior, furthering her father’s legacy.
Bernard Arnault’s Net Worth And Recognition
Bernard Arnault’s entrepreneurial success has translated into immense wealth, making him one of the wealthiest individuals globally. In April 1999, he surpassed Zara’s Amancio Ortega to become the richest person in the fashion industry. His holdings in LVMH, primarily through his holding company Pilinvest, have contributed significantly to his fortune. Arnault’s net worth has fluctuated over the years, briefly surpassing Jeff Bezos to become the world’s richest person in December 2019 and January 2020. However, the COVID-19 pandemic impacted luxury goods sales, causing a temporary decrease in his wealth. As of September 2023, Arnault’s net worth stands at $192.2 billion, according to Forbes.
