Francoise Bettencourt Meyers, the world’s richest woman, and Bernard Arnault, the Louis Vuitton boss, collectively lost $6 billion in net worth recently, according to data from the Forbes Billionaires Index.
Bettencourt Meyers saw her wealth drop by $2.9 billion, while Arnault’s valuation fell by $3 billion.
At 70 years old, Bettencourt Meyers, heiress to the L’Oréal empire, derives much of her wealth from the renowned beauty company, despite L’Oréal facing significant financial setbacks this year, contributing to a drop from her peak net worth of $100 billion in December 2023 to approximately $91.8 billion currently.
Earlier, Nicolas Hieronimus, CEO of L’Oréal SA, adjusted the company’s growth expectations for the global beauty market downward, citing challenges in China that have dampened sales after years of robust expansion. L’Oréal now anticipates the global beauty market to grow between 4.5% and 5% this year, down from an earlier forecast of 5%.
Following the announcement, L’Oréal’s shares experienced a notable decline in Paris, dropping by as much as 5.1% before closing 3.4% lower. These market reactions underscore concerns over the company’s future performance amidst challenging global economic conditions.
Despite these challenges, L’Oréal recently appointed Nigerian creator Temi Otedola as its first African digital brand ambassador. Temi Otedola, daughter of Nigerian billionaire Femi Otedola, represents a strategic move by L’Oréal to expand its presence in the African market, tapping into diverse consumer demographics and digital platforms for brand promotion.
In contrast, Bernard Arnault’s wealth drop is propelled by his stake at LVMH (Moët Hennessy Louis Vuitton), where he oversees a conglomerate encompassing 75 prestigious brands in fashion and cosmetics, including Louis Vuitton and Sephora.
The luxury sector is currently grappling with sluggish trends, notably concerning the momentum in the leather goods category and the competitive dynamics within the cognac market. These challenges are expected to translate into a projected decrease of 2% in earnings per share (EPS) for fiscal years 2024 through 2026.
This outlook anticipates heightened margin pressures particularly within LVMH’s Fashion & Leather Goods (F&LG) and Wines & Spirits (W&S) divisions, reflecting a cautious stance amid evolving market conditions. Arnault is worth $193.7 billion as of June 27, 2024.
What you should know about Francoise Betterncourt
Bettencourt Meyers and her family maintain a controlling stake of over a third in L’Oreal, with her leadership dating back to 1997 on the company’s board.
She also chairs the family’s holding company, inheriting the role after her mother, Liliane Bettencourt, the former richest woman globally, passed away in 2017 at age 94.
Beyond business, Bettencourt Meyers presides over her family’s philanthropic foundation, promoting advancements in French sciences and arts. Notably, following the 2019 Notre Dame Cathedral fire, L’Oreal and the Bettencourt Meyers family collectively donated $226 million for its restoration.
About Bernard Arnault
Arnault’s influence extends beyond LVMH; through his holding company Agache, he supports ventures like Aglaé Ventures, which is involved in strategic investments in companies such as Netflix and ByteDance, the parent company of TikTok.
Recently, Arnault’s expansion efforts included investments in Richemont, a rival luxury company owned by South Africa’s wealthiest individual, Johann Rupert to bolster his market position in the watch industry.