Francoise Bettencourt Meyers, the 70-year-old granddaughter of L’Oreal’s founder and the world’s wealthiest woman, has experienced a significant dent in her net worth, witnessing a staggering decline of approximately $6.6 billion.
This downturn is directly attributed to the plunge in L’Oreal’s share prices, which tumbled by as much as 7.5% on Friday (February 9).
The setback for the beauty magnate followed L’Oreal’s report of fourth-quarter sales growth that fell short of market expectations, prompting concerns among investors. Despite a 6.9% rise in Q4 sales, totaling $11.4 billion, the figure slightly lagged behind analyst forecasts.
- L’Oreal’s underperformance in Asia, particularly in its travel retail business, faced challenges due to increased Chinese government control over resellers.
- The resellers, subject to tighter regulations, typically acquire inventory at lower prices from other markets and then sell at a discount in mainland China.
- In comparison to its main rival, Estee Lauder, L’Oreal showcased resilience, as Estee Lauder experienced an 8% decline in overall sales during the same period.
- L’Oreal, on a positive note, announced a licensing agreement with high-end fashion label Miu Miu for beauty products, with plans to launch the first fragrances under this partnership next year.
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Francoise Bettencourt Meyers, who achieved a pinnacle net worth of $100 billion last year, has now seen her wealth diminish to around $92 billion, according to Forbes estimates.
As the chairwoman of the family holding company and a board member of L’Oreal since 1997, she holds approximately 33% of L’Oreal stock.
Her ascendancy as France’s L’Oreal heiress began in 2017 following the passing of her mother, Liliane Bettencourt, the then-world’s richest woman at the age of 94.
Beyond her role in the business realm, Bettencourt Meyers is deeply involved in philanthropy. She presides over her family’s foundation, which champions progress in the sciences and arts in France.
Notably, in the aftermath of the Notre Dame Cathedral fire in April 2019, L’Oreal and the Bettencourt Meyers family jointly contributed $226 million towards the cathedral’s restoration, reflecting their commitment to cultural preservation and philanthropic initiatives.
