Francois Pinault, the 88-year-old founder of French luxury powerhouse Kering, has fallen out of the world’s 100 richest individuals as the company battles declining fortunes at its flagship brand, Gucci.
Pinault now ranks 105th on the Bloomberg Billionaires Index, marking his first departure from the top fifth of the 500-person list since joining 12 years ago.
His net worth has plunged by two-thirds, from a peak of $60 billion in August 2021 to $20.3 billion as of November 21, the largest percentage decline among those still listed. At his wealth’s height, Pinault was ranked 22nd globally.
The erosion of Pinault’s fortune mirrors challenges facing the luxury goods sector, which has been hit hard by waning demand in China for high-end products, including designer fashion, fine wines, and cosmetics.
Notably, Bernard Arnault, head of Kering’s larger rival LVMH, has slid to fifth place on the Bloomberg Billionaires Index, while L’Oréal heiress Françoise Bettencourt Meyers has dropped to 21st after a long reign as the world’s richest woman.
Kering’s struggles have been exacerbated by its reliance on Gucci, which accounts for a significant portion of the group’s revenue. François-Henri Pinault, the founder’s 62-year-old son and Kering’s chairman and CEO, has steered the company for nearly two decades, refocusing its strategy on luxury goods. Despite these efforts, Gucci’s performance has been uneven, and Kering issued its third profit warning of 2024 in October.
What we know
The firm’s shares have fallen nearly 50% this year, with annual profits projected to hit their lowest levels since 2016. Market conditions, particularly in Asia, have had an “oversized impact” on Gucci’s sales, the company noted in its quarterly report.
“We are working tirelessly to create the conditions for a return to growth,” François-Henri Pinault told shareholders in September, reiterating his commitment to revitalizing the brand.
The Pinault family retains a 42% stake in Kering and controls 59% of its voting rights. Their holding company, Groupe Artemis, manages assets valued at €40 billion, spanning prestigious vineyards, Christie’s auction house, and contemporary art museums in Paris and Venice.
What you should know about Pinault
Artemis has also diversified into entertainment, acquiring a $3.7 billion majority stake in Creative Artists Agency in 2023. The talent management firm includes on its roster actress Salma Hayek, François-Henri’s wife, showcasing the family’s continued influence in both luxury and culture despite recent setbacks.
Salma Hayek and François-Henri Pinault, CEO of luxury powerhouse Kering, have been married for 15 years. The couple reportedly first met at a gala hosted at Palazzo Grassi, a Venetian palace owned by the Pinault family. They married in a surprise civil ceremony in Paris on Valentine’s Day 2009, followed by an elaborate wedding celebration in Venice two months later. In 2018, they renewed their vows in Bora Bora, cementing their reputation for unforgettable celebrations.
