In a significant shift of fortunes, Jeff Bezos, the founder and CEO of Amazon, has overtaken Bernard Arnault, the founder and CEO of French luxury goods firm LVMH Moët Hennessy, to become the second-richest person in the world. This change in rankings was primarily driven by the recent selloff in luxury stocks, which had a negative impact on Arnault’s net worth. Currently, Bezos’ net worth stands at $156 billion, slightly ahead of Arnault’s $155 billion, according to the Bloomberg Billionaires Index.
The decrease in Arnault’s wealth can be attributed to softer third-quarter sales reported by LVMH, the parent company of renowned brands such as Louis Vuitton and Dior. As customers spent less on high-end goods, the luxury firm’s stock dipped by 2.2%, resulting in a $6.8 billion decline in Arnault’s net worth. Market analysts suggest that this slump reflects a potential end to the luxury supercycle and a moderation in revenue growth.
RBC analysts emphasize that the luxury sector may witness a consolidation of previous gains due to factors such as higher interest rates, lower disposable incomes for western consumers, and a less favorable macroeconomic situation in China. In spite of this, they maintain an optimistic outlook for LVMH, assigning it an “Outperform” rating.
On the other hand, Bezos has been able to capitalize on the tech stock rally this year, with his net worth increasing by an impressive $49.3 billion year-to-date. Meanwhile, Elon Musk, the CEO of Tesla and SpaceX, remains the world’s richest person, with his net worth surging by an astounding $96.8 billion in 2021 to reach $234 billion.
