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Bernard Arnault becomes world’s second-richest man

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… how did he make his billions?

 

Louis Vuitton (LVMH) boss Bernard Arnault, 70, overtook Bill Gates to become the second richest person in the world, the Bloomberg Billionaires Index announced Wednesday—and he did it in style.

The French businessman, who is the force behind many of the biggest names in luxury, pushed to the second spot after a stellar year for LVMH, which saw company shares rise 43%. His net worth is now estimated at $107.6 billion—an increase of $39.1 billion in a single year.

This remains way short of Amazon founder Jeff Bezos’ $124 billion fortune. Yet Europe’s richest person—whose fortune is estimated to be equivalent to 3% of France’s GDP—is one of only three members in the ultra-exclusive centibillionaire’s club.

But just who is Bernard Arnault? And how did he make his fortune? More importantly, how does he manage to spend all that cash?

A fateful taxi ride

After studying engineering at the prestigious Ecole Polytechnique in Paris and graduating in 1971, Arnault joined his family’s construction company, Ferret-Savinel, as an engineer. Yet it was a chance meeting in New York that proved to have a far more dramatic impact.

Sitting in a yellow cab, Arnault asked the driver what he knew of France. “He could not name the president but he knew Dior,” Arnault recently told the Financial Times.

From there, Arnault’s course was set: within three years—and by the age of 30—he’d reinvented Ferret-Savinel as a real estate firm called Férinel, and replaced his father as company president. And in 1984, he embarked on an even more drastic venture. After lobbying the French government, he left Férinel and took up the reins of faltering textile company, Boussac—whose portfolio included the house of Dior—and systematically turned the company into the launchpad for his luxury empire. The purchase price? One Franc.

A luxury shopping spree

In 1987, Arnault was asked to mediate in the rancorous merger of Möet Hennessy and Louis Vuitton, largely because LV held the rights to Dior perfume and Henry Racamier, the 77-year-old chairman of LV, saw him as an ally, according to a report from the New York Times.

Arnault had other plans, however, and instead sided with Moet Hennessy boss, Alain Chevalier, and bought 27% of LVMH in combination with Guinness. This grew to 37% in 1988 and by 1989 Arnault was the biggest shareholder. A year later Racamier resigned from his own family firm and Arnault become both chairman and CEO of LVMH.

It was part of a rapid expansion that saw Arnault snap up luxury firms including Céline (1988), Berluti (1993), Guerlain (1994), Marc Jacobs (1997), Thomas Pink (1999), Fendi (2001), and DKNY (2001).

LVMH itself now comprises 75 ‘houses,’ including Dom Pérignon, Bulgari, Givenchy, and TAG Heuer. Alongside the 23-story LVMH Tower on New York’s 57th Street, the company owns the Cheval Blanc ski resort in Courchevel, the Hotel Cipriani in Venice (site of George Clooney’s 2016 wedding), the Orient Express, and luxury resorts in the Caribbean, Maldives, St. Tropez, and Paris.

In 1999, Arnault also invested in a small but enterprising DVD rental firm. It’s name? Netflix.

A bet pays off

Arnault was one of the first overseas businessmen to take the gamble of investing in China at the start of Deng Xiaoping’s market-economy reforms, opening a Louis Vuitton store in Beijing in 1992.

The risk has massively paid off over the years. In the first quarter of this year, for instance, LVMH reported a revenue increase of 16% to $14.10 billion, largely fueled by Chinese buyers, who account for over a third of the luxury sector’s sales.

“With the Chinese, the business is really moving from strength to strength,” Financial Director Jean-Jacques Guiony told reporters in April.

Going after Gucci

Like all business leaders, Arnault has suffered his fair share of failures along the way. Most notably, his 1999 attempt to takeover Gucci—described as “the bloodiest fight in fashion” by the New York Post—which resulted in litigation that Arnault ultimately lost. To his chagrin, the fashion house fell into the arms of arch-rival François Pinault for $2.92 billion.

In 2014, Arnault also admitted defeat in a four-year attempt to purchase luxury scarf-maker Hermès, after then-Hermès Chief Executive Patrick Thomas launched court proceedings to prevent LVMH from mounting a takeover. Arnault eventually agreed to relinquish his 23% stake in Hermès as a result.

Elsewhere, Arnault has unsuccessfully challenged the dominance of luxury auction houses Christie’s and Sotheby’s by buying British auctioneers Phillips in 1999 and got his fingers badly burnt with online retailer Boo.com, which went into liquidation in 2000.

Rising to second place

An April 10 release detailing first-quarter trading for LVMH, stated that, “All geographic regions are experiencing good growth.

“This includes a 20% increase in sales of fashion & leather goods, a 13 % rise in sales of wines & spirits and a 12 % increase in sales of perfumes & cosmetics. Overall, LMVH showed first-quarter growth of 16% and organic growth of 11% compared to 2018. Its overall revenue was around $14.3 billion.

These better-than-expected results have led to a 27% rise in LVMH shares since January 29, when the group announced record sales for 2018.

Arnault is not resting on his laurels, either. On April 17, LVMH announced the completion of its $3.2 billion deal for Belmond, making them part-owners or managers of 45 luxury hotel, restaurant, train, and river cruise properties.

Rihanna and Stella

On May 10, they followed this up with the creation of the new Fenty fashion line, centered around Barbadian pop star Rihanna.

“Designing a line like this with LVMH is an incredibly special moment for us,” Rihanna said in a release. “Mr. Arnault has given me a unique opportunity to develop a fashion house in the luxury sector, with no artistic limits. I couldn’t imagine a better partner both creatively and business-wise.”

More recently, LVMH announced a partnership with Stella McCartney’s name sake brand, which was publicly owned by rival company Kering until last year. The pair did not disclose the terms of the deal, but said it will allow McCartney to continue as creative director and majority owner of the brand.

“The chance to realize and accelerate the full potential of the brand alongside Mr. Arnault and as part of the LVMH family, while still holding the majority ownership in the business, was an opportunity that hugely excited me,” McCartney said in a release.

“It is the beginning of a beautiful story together, and we are convinced of the great long-term potential of her House,” said Arnault, before stressing that McCartney’s ethical principles were “a decisive factor”.

With the fashion world increasingly drawing criticism for its environmenal footprint, McCartney’s brand is clearly one that Arnault and LVMH can draw from.

“She was the first to put sustainability and ethical issues on the front stage, very early on, and built her House around these issues,” Arnault added about McCartney. “LVMH was the first large company in France to create a sustainability department, more than 25 years ago, and Stella will help us further increase awareness on these important topics.”

 

 

Source : Fortune

 

 

 

 

 

 

 

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Swegop to Politicians: Stop Mudslinging, Fix Roads

The South West Guild of Online Publishers (SWEGOP) has urged politicians to stop mudslinging and focus on issues affecting Nigerians, while calling on the Federal Government and state governments to declare a state of emergency on roads ravaged by rainfall.

The guild said political campaigns should be centred on policies, development plans and practical solutions to the people’s problems, rather than false information, unsubstantiated allegations and personal attacks.

The position was contained in a statement signed by the guild’s Acting Chairman, Chief Tunde Busari, and Publicity Secretary, Mr Remi Oladoye.

SWEGOP warned that spreading misinformation during political campaigns could erode public confidence in the democratic process, urging politicians to tell the electorate what they intend to do and how they plan to deliver on their promises.

It called on political actors to embrace responsible communication and constructive engagement, stressing that campaigns should provide voters with clear choices on policies and programmes capable of improving their lives.

In a related development, the guild called on the Federal Government and state governments to urgently address the worsening condition of roads following damage caused by rainfall in several areas.

It expressed concern that some roads had been washed away or rendered impassable, making movement difficult for motorists and other road users.

The guild urged the relevant authorities to prioritise the rehabilitation of damaged roads, improve drainage systems and implement lasting solutions to prevent recurring damage, particularly during the rainy season.

It warned that the deteriorating road network posed risks to road users and could disrupt the movement of people and goods, with consequences for commercial activities and the wider economy.

SWEGOP stressed that emergency repairs must be backed by proper drainage, effective maintenance and coordinated action by the different levels of government to prevent the problem from recurring.

The guild maintained that responsible political campaigns and urgent action on failing infrastructure were both necessary to address public concerns and improve the lives of Nigerians.

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2027: Alli, Oseni Tour Ibarapa, Seek Support for APC Candidacies

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Governorship, Oyo South senatorial candidates meet traditional rulers, religious leaders and community groups

The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, and the party’s Oyo South senatorial candidate, Hon. Remi Oseni, have toured Ibarapa North, Central and East Local Government Areas to seek stakeholders’ support for their 2027 candidacies and other APC candidates across the ballot.

The two-day tour, which took place on Monday and Tuesday, covered Igangan, Tapa, Ayete, Idere, Igbo-Ora and Eruwa, where the candidates met traditional rulers, religious leaders, community groups and other stakeholders to discuss the area’s development challenges and solicit their backing ahead of the 2027 general elections.

During the engagements, Alli outlined his priorities for Oyo State, promising to prioritise the reconstruction of the Ibadan-Ibarapa road, extending to Igangan, improve the education sector, revive public water supply and strengthen local government administration if elected governor.

The delegation visited the palaces of the Asigangan of Iganganland, Oba Rafiu Adeniyi; the Asawo of Ayete, Oba Emanuel Ewuola Okeniyi; the Elempe of Tapa, Oba Sunday Oyekanmi Titiloye (Abioje I); the Olu of Igbo-Ora, Oba Jimoh Olajide Titiloye (Asoroolu Ayinla V); and the Eleruwa of Eruwa, Oba Samuel Adebayo Adegbola (Ajobo Olurin I). The team was also hosted by Dr. Olusola Ayandele Eruobodo at his residence on Monday evening.

Speaking during the meetings, Alli identified effective local government administration as critical to grassroots development, noting that local councils must be empowered to deliver meaningful improvements to their communities. He pledged to work towards a functional local government system that would make development more visible at the grassroots.

On education, the APC governorship candidate expressed concern about the standard of learning in the state and proposed limiting class sizes to a maximum of 30 pupils to improve teaching and learning outcomes.

He also promised to ensure that Oyo State’s financial resources, including federal allocations, translate into tangible improvements in infrastructure and public services. As part of his plans to improve residents’ welfare, he pledged to work towards reviving the state water corporation to ensure a more reliable supply of clean water across the state.

On infrastructure, Alli reiterated his commitment to reconstructing the Ibadan-Ibarapa road, extending to Igangan. He also promised to create greater opportunities for indigenous construction firms in the award of public contracts, while engaging external contractors for projects beyond the capacity of local companies.

The APC candidate also criticised the reported N5.5 billion expenditure on a stadium, questioning whether the facility met international standards and adequately served the needs of the state’s football clubs, particularly Shooting Stars Sports Club (3SC).

He cited difficulties faced by the club in arranging matches, including playing several away fixtures within a week and receiving a hostile reception at its temporary home ground in Ogun State. He attributed these challenges to the stadium facility’s reported failure to meet the required standards.

Also addressing the gatherings, Oseni, who is seeking election to the Senate to represent Oyo South Senatorial District, highlighted his contributions to the development of communities across Ibarapa and appealed to residents and community leaders to support his senatorial ambition.

He urged stakeholders to support APC candidates across the ballot, arguing that stronger cooperation between the state and the Federal Government could improve Oyo State’s access to federal opportunities, resources and development initiatives.

At a meeting with the League of Imams in Igbo-Ora, Alli acknowledged that disunity within the Muslim community might have affected communication with political leaders. He assured the religious leaders that his administration would not marginalise any religious group and appealed for their support for his aspiration and those of other APC candidates.

The tour was attended by APC leaders and campaign officials, including the Director-General of the Sharafadeen Alli Campaign, Hon. Yemi Aderibigbe; the Director-General of the Remi Oseni Campaign Council, Chief Lowo Obisesan; and the APC Deputy National Auditor, Hon. Gbenga Ariba, alongside other party leaders from across Oyo State.

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Watchdog Alleges Pressure on Oyo LG Chairmen, Warns Against Releasing N2.57bn for election

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Group questions budgetary provision, cites pending court cases

The Watchdogs for Good Governance has warned the 33 local government chairmen in Oyo State against releasing council funds for the planned December 29 local government election, questioning the legality and financial implications of a proposed N4.28bn funding arrangement.

The group alleged that the councils were being pressured to contribute N2.57bn towards the exercise despite claims that no provision was made for the expenditure in their 2026 budgets.

Under the proposed arrangement announced by the state government, the local governments are expected to bear 60 per cent of the election cost, amounting to N2,566,800,000, while the state government will contribute the remaining 40 per cent, or N1,711,200,000.

The controversy followed an announcement by the Commissioner for Information, Prince Dotun Oyelade, that the State Executive Council had approved funding for the Oyo State Independent Electoral Commission to conduct the election scheduled for December 29.

But the Watchdogs for Good Governance, in a statement issued on Tuesday and signed by its convener, Comrade Ahmed Adeyemo, questioned why the councils should commit billions of naira to the election when, according to the group, the expenditure was not captured in their approved budgets.

Adeyemo argued that the proposed spending could further limit the resources available to local governments to address pressing needs in their communities, including bad roads, inadequate infrastructure and poor access to primary healthcare.

“Where is the budgetary provision for OYSIEC? Why resort to milking the councils dry when grassroots communities are grappling with bad roads, lack of basic infrastructure and poor access to quality primary healthcare?” he asked.

The group also raised concerns over pending court cases challenging the conduct of the election, warning that the councils could face financial consequences if the exercise were subsequently nullified.

According to Adeyemo, at least three suits had been filed by members of the Allied Peoples Movement over the election, including grievances relating to the selection of chairmanship and councillorship candidates across the 33 local government areas.

He maintained that proceeding with the election while the cases remained pending raised questions about the prudence of committing such a substantial amount of public money to the exercise.

“Spending billions on an election that is sub judice and may be voided by the courts is the height of administrative irresponsibility and financial recklessness,” Adeyemo said.

The group further alleged that council chairmen were under intense pressure from the state government to release their respective contributions, although it did not provide documentary evidence to substantiate the claim.

It consequently urged the chairmen not to authorise any transfer of council funds for the election without addressing the budgetary and legal concerns it had raised.

Adeyemo warned that any chairman found to have improperly diverted public funds for the exercise should be held accountable, insisting that local government resources should be used to meet the needs of residents.

“The funds belong to the people of Oyo State for development, not for funding an election whose legality is being contested,” he said.

The group called on the relevant authorities to clarify the financial arrangements for the election and address the concerns surrounding the pending litigation.

Efforts to obtain reactions from the affected council chairmen as of press time were unsuccessful.

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