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Summary
- Fashion tycoon Bernard Arnault has ranked number 1 on the Forbes’ Real Time Billionaires rankings.
- He became the world’s richest person on Monday after a rise in LMVH shares.
- Despite the 2020 sales decline, LVMH recorded 32% y-o-y revenue growth in Q1 2021.
Stirred up by the pandemic, the word volatility has been trending across all areas of life and business. The Forbes’ Real Time Billionaires rankings, too, are living the sways as this week saw fashion tycoon Bernard Arnault moving past Elon Musk as the world's richest person.
Bernard Arnault, Chairman and CEO of LVMH, has an estimated net worth of US$186.3 billion, while Jeff Bezos and Elon Musk are worth US$186 billion and US$147.3 billion, respectively. LMVH oversees an empire of 70 brands like Louis Vuitton, Sephora, Tiffany & Co, Donna Karen, TAG Heuer, De Beers and Bulgari, to name a few.
Bernard Arnault on Forbes magazine’s cover page © Ifeelstock | Megapixl.com
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How Arnault overtook Musk?
Arnault overtook Musk after a rise in Moët Hennessy Louis Vuitton SE (LMVH) shares when trade opened on Monday. Arnault owns a 96.5 per cent stake in Christian Dior, which holds 41 per cent of LVMH. The increase in the market capitalisation of LMVH increased Arnault's stake by US$600 million.
Despite the pandemic hitting the fashion world hard, LVMH recorded 32% y-o-y revenue growth in Q1 2021. The Wines & Spirits business recorded a 36% increase in revenue in the first quarter of 2021. Organic revenue of the Fashion & Leather Goods and Perfumes & Cosmetics divisions grew 52% and 18%, respectively, while the Watches & Jewelry business group recorded 35% organic revenue growth.
Except for weak numbers in a few segments, the revenue-based performance of the luxury firm superseded the pre-pandemic levels too. Despite the 2020 sales declining for the group, its diversified global presence and broad portfolio of brands helped maintain investor confidence.
© Brooklynboy321 | Megapixl.com
Forbes No. 1 - Whose Stronghold?
As per a Forbes report, for over two decades, Bill Gates had held the top spot on the Forbes' annual Billionaires List.
Amancio Ortega, the co-founder of Inditex, known for its Zara fashion chain, is one tycoon who had briefly surpassed Bill Gates, and the other one was Jeff Bezos. Bezos has returned to the top ranks in the current times. Bezos has mostly held a strong grip on the numero uno spot with Elon Musk losing his position to stay third after critical moves such as Tesla's decision to cease accepting payments in bitcoin for its vehicles.
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Concept Of Economic Inequality ID 94181639 © Prazis | Megapixl.com
Has inequality widened post the pandemic?
As per the Oxfam Paper “The Inequality Virus”, from Q2 to Q4 in 2020, Elon Musk and Jeff Bezos saw an increase in their net wealth by US$128.9 billion and US$78.2 billion, respectively. The analysis was based on the Forbes’ Billionaires List. Over the period, the rich got richer while the number of people living with less than US$5.50 per day could have risen to more than 200 million to half a billion in 2020.
