LVMH CEO Bernard Arnault has acquired $230 million worth of the company’s shares since the company began experiencing a dip in stock price in late July 2023.
Arnault, a frequent buyer of LVMH stock, already owns nearly 48% of the company’s shares along with his family and about 64% voting rights.
The billionaire’s investment vehicles, Financiere Agache and Christian Dior SE, began buying LVMH stock three days after the company issued a disappointing earnings report on July 25, 2023. Since then, the company’s stock price has dipped by 14% as its performance has been impacted by slowing demand in the U.S. and China, rising interest rates, and stubborn inflation.
The company’s earnings report pointed to a 1% decline in organic revenue for the LVMH brand and Tiffany & Co., prompting investors to sell off stock. The day after the company released its earnings report, its stock dipped by 5.2%, and by the end of the month, its stock was down 7.8%.
The stock sell-off has knocked LVMH from its position as the biggest European company by market value. It now ranks second to Novo Nordisk A/S, a Danish drugmaker that is seeing significant demand for its weight loss drug Ozempic. The sell-off has also resulted in a $42 billion reduction in Arnault’s wealth, now estimated to be around $170.4 billion.
It is worth noting that despite the recent sell-off, LVMH’s stock is still up by 8.8% so far this year, and Arnault continues to be the second richest person in the world after Tesla CEO Elon Musk, who has amassed over $230.7 billion in wealth.
