Billionaire Bernard Arnault Buys €215 Million of LVMH Shares

Introduction

Billionaire Bernard Arnault has purchased €215 million ($230 million) worth of LVMH shares following the luxury conglomerate’s disappointing earnings in late July, which led to a decline in the stock price.

Arnault’s Purchases

• Arnault’s Financiere Agache and Christian Dior SE vehicles started buying LVMH Moet Hennessy Louis Vuitton SE shares three days after the July 25 earnings report.
• French regulatory filings confirm the purchase.

Reasons for Stock Decline

• The stock has dropped 14 percent since the disappointing earnings report.
• Factors contributing to the decline include slowing economies in China and the US, persistent inflation, and rising interest rates.

Arnault’s Ownership

• Arnault and his family own approximately 48 percent of LVMH’s shares and hold nearly 64 percent of the voting rights.
• Arnault, the world’s second-wealthiest individual, regularly buys LVMH stock, except during blackout periods around earnings reports.

LVMH’s Struggles

• LVMH’s second-quarter results revealed a 1 percent decline in organic revenue in the US.
• This performance alarmed investors, resulting in a 5.2 percent drop in shares on the next trading session.

Market Value Decline

• Last month, LVMH shares experienced a 7.8 percent decline, the largest monthly drop since December.
• This decline caused LVMH to lose its position as the biggest European company by market value, with Novo Nordisk A/S taking the lead.

Impact on Arnault’s Wealth

• Arnault’s wealth decreased from a record $212.4 billion in mid-July to $170.4 billion as of Thursday.
• Elon Musk currently holds the top spot with $230.7 billion, according to the Bloomberg Billionaires Index.

Yearly Performance

LVMH shares have still gained approximately 8.8 percent in value this year.

Conclusion

Bernard Arnault’s recent purchase of LVMH shares aims to take advantage of the stock’s decline following disappointing earnings. Despite the setback, LVMH remains a strong performer in the luxury industry.

By Valentine Baldassari and Angelina Rascouet

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