Connect with us

News

Bernard Arnault becomes world’s second-richest man

Published

on

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.

ALSO READ  Sanwo-Olu Conveniently Wins Lagos Governorship Election

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.

ALSO READ  Eight injured in Oshodi building collapse

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.”

ALSO READ  Latest Richest Person In The World Emerged As Spanish Retailer Defeats Bill Gates!

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

 

 

 

 

 

 

 

Continue Reading
Comments

News

Torrential rains destroy shelters for displaced people in northeast Nigeria

Published

on

By

Torrential rain has destroyed makeshift tents and caused severe flooding to temporary displacement camps in northeast Nigeria, leaving vulnerable families homeless. The Norwegian Refugee Council (NRC) is appealing for urgent financial assistance to address the colossal humanitarian needs and to prevent the spread of deadly cholera.

“Displaced people are suffering due to relentless rains and wind battering their homes the last few days. Large numbers of families, who fled from conflict months ago, are left homeless while others are forced to share overcrowded tents with neighbours or relatives,” said Eric Batonon, Country Director for NRC in Nigeria.

According to NRC’s assessments, over 6,800 people living in displacement camps in Maiduguri have been impacted by floods in recent weeks. In Dikwa, 500 people have been rendered homeless due to flooding and have set up home in disused registration centres.

“They are essentially displaced within a displacement camp,” Batonon added.

“My home is completely destroyed. My floor has turned to mud and water is everywhere. The rain keeps coming and we do not have any choice but to wait for it to stop or share with others,” said displaced mother-of-four Fatima Mohammed (30).

The Adamawa State Government officially declared an outbreak of cholera in three local government areas during the rainy season. The total number of cases reported as of August 16 stands at 633. Four people have so far lost their lives to the disease. Due to recent heavy rain and flooding, more cases could be confirmed over the coming weeks.

ALSO READ  Edgar Imohimi, new Lagos Police Commissioner releases his phone number

“Displaced people are living in sub-human conditions across the region. There are no sanitation or drainage facilities in most camps. People are going to the toilet in open spaces because there are no facilities for them to use and now that the camps are filled with stagnant flood water, water-borne diseases like cholera quickly spread,” Batonon added.

The United Nations and partners have appealed for $848 million to address the needs in northeast Nigeria this year. About eight months into the year, less than 40 per cent has been received.

“Additional financial support is urgently needed to reach the 6.2 million people targeted for humanitarian aid in 2019. People will die if they don´t receive urgent assistance now,” Batonon said.

Furthermore, heavy rain periods present opportunities by armed groups to infiltrate and target displacement camps. On Tuesday night (August 20) in Dikwa, a female suicide bomber detonated a bomb, killing herself and injuring four civilians. This was the first attack of its kind in the area since December 2018.

Continue Reading

News

IT’S OFFICIAL: Osinbajo Appoints Ajimobi’s Ex- Documentary Photographer, Tolani Alli

Published

on

By

Nigeria’s Vice President, Prof. Yemi Osinbajo has appointed Tolani Alli as his official photographer.

Tolani Alli, the daughter of the immediate past Secretary to the Oyo State Government, Alhaji Olalekan Alli, was the former documentary  photographer to Ex- governor Abiola Ajimobi.

She will be joining Bayo Omoboriowo who is President Muhammadu Buhari’s official photographer.

The Special Assistant to President Muhammadu Buhari on Digital and New Media, Tolu Ogunlesi, in a tweet, confirmed her appointment

“Looking forward to working with this pair over the next four years. Official Photographers to President Buhari (@bayoomoboriowo) and Vice President Osinbajo (@tolanialli)”, the tweet reads.

ALSO READ  PDP warns Buhari over N120bn fraud allegation against IG of Police
Continue Reading

News

Makinde Congratulates Sunday Dare On Appointment As New Youths & Sports Minister

Published

on

By

Oyo State Governor, Engineer Seyi Makinde, on Thursday congratulated the newly-appointed Minister of Youth and Sports, Mr. Sunday Dare, just as he charged him to bring his wealth of experience to bear in transforming and repositioning the ministry.

The governor urged the Ogbomoso-born minister to be a good ambassador of Oyo State and to showcase the Pacesetter qualities of the State in the new position.

Governor Makinde , in a statement signed by his Chief Press Secretary, Mr. Taiwo Adisa, added that the government of Oyo State would be looking forward to having a symbiotic relationship with the Federal Government through Dare, who is now an ambassador of the state.

The statement further reads, “On behalf of the good people of Oyo State, I congratulate Mr. Sunday Dare on his appointment as the Minister of Youth and Sports.

“By this appointment, Mr. Dare has become an ambassador of Oyo State, which has always been the pace-setter in all positive ramifications and we charge the new minister to keep that flag of excellence flying.

“I urge him to bring his wealth of experience to bear on the ministry and we will like to state that as a people-oriented Government and one that has made the commitment to bring about positive change in the life of the people of the state, we are ready to have a symbiotic relationship with the Federal Government through Mr. Dare.

ALSO READ  Eight injured in Oshodi building collapse

“It is our prayer that he succeeds in the new assignment and win laurels to the admiration of Nigerians”.

Continue Reading

Tweets by ‎@megaiconmagg

Subscribe to our Newsletter

* indicates required

MegaIcon Magazine Facebook Page

MEGAICON TV

Trending