Bernard Arnault faces pressure as LVMH stumbles

Billionaire Bernard Arnault is facing tough times with his luxury conglomerate LVMH amid slow demand in China, looming US tariffs, and underperforming sales at key brands like Dior and Moet Hennessy.

What is happening?
The LVMH stock has plummeted nearly 50% from its April 2023 peak, erasing over $236 billion in market value.

Arnault, once the world’s richest man whose net worth hit a high of $231 billion in March 2024, has been knocked down to No. 10. His wealth has shrunk to $149 billion.

Internal challenges
LVMH owns over 75 brands, out of which Louis Vuitton, Sephora, Christian Dior Couture, and Hennessy likely generated approximately 80% of its revenue last year. However, concerns over its oversized portfolio, unclear succession, and complex structure are weighing on investor confidence.

Arnault’s five children are taking on bigger roles, like daughter Delphine at Dior and son Alexandre at Hennessy. But both are navigating brand troubles and labor cuts.

A spinoff of Sephora or restructuring the alcohol unit may be next, according to analysts.

As LVMH’s sprawling empire proves harder to steer, Arnault, 76, recently extended his CEO age cap to 85.

Meanwhile, rivals like Birkin bag maker Hermes International SCA and Cartier owner Compagnie Financiere Richemont SA are weathering the downturn with much ease.