The world’s second richest man and Fashion billionaire Bernard Arnault has made a substantial investment in LVMH shares, totalling €215 million ($230 million), following the luxury conglomerate’s lacklustre earnings report in late July, which had contributed to a decline in the stock’s value.
Arnault’s holdings, including Financiere Agache and Christian Dior SE, began acquiring LVMH Moet Hennessy Louis Vuitton SE shares just three days after the July 25 earnings report, according to French regulatory filings.
The stock has since seen a 14% decrease in value, influenced by economic slowdowns in both China and the United States, persistent inflation concerns, and rising interest rates.
According to Bloomberg, Bernard Arnault routinely invests in LVMH stock, with pauses during blackout periods surrounding earnings reports, as indicated by the filings.
What happened to LVMH’s earnings?
LVMH’s second-quarter results revealed challenges in the US market, with organic revenue experiencing a 1% decline. This performance triggered concerns among investors, leading to a 5.2% drop in LVMH shares during the subsequent trading session. This decline not only impacted the luxury sector but also weighed on the CAC 40 Index.
A further breakdown showed that in the past month, LVMH’s shares have seen a significant 7.8% decrease, marking the largest monthly decline since December.
Consequently, LVMH lost its status as the largest European company by market value, with Danish pharmaceutical company Novo Nordisk A/S taking the lead, thanks to robust sales of its obesity treatment drug, Ozempic.
This shift has affected Arnault’s wealth, which had reached a record $212.4 billion in mid-July. As of Thursday, his net worth stood at $170.4 billion, trailing behind Elon Musk’s $230.7 billion, according to the Bloomberg Billionaires Index.
Despite recent challenges, LVMH shares have still managed to maintain an overall gain of approximately 8.8% for the year.