He is known as “the cashmere wolf” after turning LVMH into a £333bn luxury goods powerhouse through a series of ruthless acquisitions that helped drive growth.
And now Bernard Arnault – who in the process has become the richest man in the world with a fortune of £175bn – is setting the stage for his five sons to take over the empire.
But the impending handover comes amid declining demand for luxury goods as the era of post-pandemic revenge spending comes to an end.
LVMH said yesterday that sales in the first quarter were just 3 per cent higher than a year earlier, at a still impressive £17.7bn.
But this was the weakest January-March performance since 2020, when the world was plunged into Covid lockdowns. Outside of the pandemic, it was the slowest first quarter since 2016.
Luxury drop: Louis Vuitton Capucines bag, advertised by Dune actress Zendaya (pictured), may cost more than £26,000
Sales at its fashion and leather goods division rose just 2 percent in another sign that even the super-rich are hesitant to spend money on expensive handbags and coats from brands such as Louis Vuitton and Christian Dior. In the same period last year, sales increased 18 percent.
LVMH is seen as an industry bellwether because it owns many brands, from Tiffany, Fendi and Celine to Moet & Chandon, Dom Perignon and Bulgari.
The Louis Vuitton Capucines bag, advertised by Dune actress Zendaya, can cost more than £26,000.
LVMH is the first major player to update its first quarter, providing insight into the spending habits of the wealthy and the health of the industry as a whole.
As feared, the group’s sales fell by 6 percent in Asia, excluding Japan.
But chief financial officer Jean-Jacques Guiony insisted he was “quite happy” with demand levels from Chinese buyers, who have been buying more products abroad.
“In an uncertain geopolitical and economic environment, LVMH remains alert and confident at the beginning of the year,” the company said.
Its rivals have struggled with much more dramatic hits to sales.
Gucci owner Kering sounded the alarm last month when it warned that first-quarter sales would be dragged down about 10 percent by weaker demand in Asia.
Although LVMH was knocked off its spot as Europe’s biggest company by weight-loss drug Ozempic owner Novo Nordisk last September, it is still worth more than its luxury rivals.
And attention will now turn to what Arnault, 75, who is worth more than Tesla boss Elon Musk, Facebook creator Mark Zuckerberg and Amazon founder Jeff Bezos, has in store.
He has shown no signs of slowing down after raising the age limit for his chief executive position to 80 two years ago.
Fortune: LVMH founder and chief executive Bernard Arnault (pictured with his daughter Delphine) is the richest man in the world with a fortune of £175bn.
The building of his empire began when he convinced his father’s construction company to purchase a textile business shortly after graduating from a prestigious Parisian university. But there may be hints of succession at tomorrow’s annual meeting. Rumors have circulated about which of the five brothers will be chosen to take over the business.
They all have important roles in the group, leading to a real-life Succession-style inheritance saga, similar to the television show starring Brian Cox.
Arnault’s only daughter, Delphine, who celebrated her 49th birthday earlier this month, is thought by many to be a favorite. Last year she was appointed director of the illustrious Christian Dior fashion brand.
But people close to the group told the Financial Times this week that it is too early to say who will be crowned successor. Luxury retail expert Wizz Selvey added: “While LVMH’s heirs exhibit varying degrees of creative ability and sensibility, there is still no clear successor to Bernard Arnault.”
Investors will vote this week to appoint Alexandre, 31, and Frederic, 29, as board members.
Alexandre holds a senior position at jeweler Tiffany, while his brother is in charge of the group’s watch division.
Older siblings Delphine and Antoine, 46, who heads the group’s communications arm, are already on the board.
It is also rumored that the youngest son, Jean, 25, who heads the watch division of the Louis Vuitton brand, will eventually rise to a position on the board of directors.
There will also be updates from Kering, owner of Gucci, Prada and Hermes next week.
British luxury brand Burberry and Cartier owner Richemont will report in May.