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Bloomberg
Bernard Arnault, Europe’s richest man, got another boost as LVMH shares reached a record due to better-than-expected sales of Louis Vuitton handbags and leather goods.
The Frenchman, whose fortune has increased by more than $19 billion in 2019, is rubbing shoulders with Bill Gates and Warren Buffett in the Bloomberg Billionaires Index, with a net worth of more than $87 billion.
LVMH shares rose as much as 4 percent to 342.80 euros, the highest level since the stock was listed in October 1989, propelling the company’s market value close to $200 billion.
The luxury conglomerate’s first-quarter sales report showed its strategy of tapping hip new design talents such as Virgil Abloh has reignited interest in its biggest brands.
Arnault has been gradually advancing through the ranks of Europe’s billionaires, surpassing Inditex SA founder Amancio Ortega and L’Oreal SA’s Francoise Bettencourt Meyers, the richest woman on the planet. His wealth has again moved past that of Buffett, the Berkshire Hathaway Inc chairman.
Arnault’s rise continues the trend of Europe’s richest people coming from the luxury and consumer-goods sectors. The continent’s wealthiest include the founders and heirs of companies including Chanel SA, Nutella maker Ferrero SpA and EssilorLuxottica SA, the owner of the Ray-Ban brand.
LVMH sales beat analysts’ estimates in the first quarter as fresh propositions like Christian Dior monogrammed low-top sneakers and $1,200 Louis Vuitton utility harnesses hit stores. The key fashion and leather division posted a 15 percent gain.
The luxury industry is now in its third year of rapid growth as millennial and Gen Z shoppers warm up to the revamped offer and newfound digital savvy of brands like Kering SA’s Gucci. The bonanza has been driven by China, where booming sales of high-end fashion have resisted an economic slowdown that pinched revenue for some car manufacturers and Apple Inc.
LVMH’s reshuffle has focussed on menswear, with Abloh taking the helm of Louis Vuitton’s menswear division. At Christian Dior, designer Kim Jones released buzzy new sneaker models and adapted the brand’s famous Saddlebag line for men.