World's Richest Person Bernard Arnault Is Worth $210 Billion, Surpassing Elon Musk

It is no secret that Tesla Chief Executive Elon Musk is certainly not the most wealthy person in the world, and there is no doubt that he does not sit atop the list of the world's richest people right now.

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It has been estimated that Bernard Arnault's net worth stands at $210 billion at the end of last Thursday, according to the Bloomberg Billionaire Index, which measures the fortunes of billionaires, including individuals such as CEOs of LVMH Moet-Hennessy Louis Vuitton SE MC, +0.51% and their families. Considering the fact that he has more money than Musk TSLA, +2.97%, Tesla's CEO, he takes the top spot in the world by that metric, giving him a comfortable lead over Musk, who has wealth of $180 billion. Sometimes, the two have been competing neck-and-neck for the top spot and have been neck-and-neck on a few occasions.

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In addition to reaching a record close on Thursday, LVMH shares closed at €883, lifting the French CAC-40 PX1, +0.17% to a record level. Following a first-quarter sales that exceeded expectations, the luxury retailer saw a rebound in international travel that drove duty-free sales as China shoppers returned, thanks to COVID-19 restrictions easing. The share price of LVMH rose another 0.7% to €890 on Friday, after being up 7% this week.

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According to Trade Algo, the market surge put a $11.6 billion notch on Arnault's fortune, which is his second-highest gain ever in a single day, and has set him back on course to set a new record. Musk also did well with the stock market surge, adding $3.83 billion to his wealth.

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There are many jewelers and fashion houses within LVMH, including Bulgari and Tiffany, as well as Louis Vuitton and Dior. Berenberg analysts noted that luxury giant's results released late Wednesday exceeded expectations across all divisions, including fashion and leather goods, which both showed significant growth.

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On Friday, Berenberg analyst Graham Renwick wrote, "Because the Chinese economy is recovering after the pandemic disruption, it is very encouraging to see that the division is the most profitable," and this bodes well for margin development.

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Despite the pandemic disruption that China is experiencing, the first quarter luxury report sets the bar for luxury reporting and gives hope for the future recovery of China. LVMH's results reaffirm LVMH's strong momentum and best-in-class execution, which we feel investors are favoring in these uncertain macro environments, and we believe these results will strengthen the company's position as a company of high quality and strong track record,” Renwick, who reinforced his buy rating on LVMH and raised his price target to €960.

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It was an excellent day for the luxury sector on Friday, as Hermes International SCA RMS, +0.90% reported a boost in sales momentum for the first quarter of the year, boosted by the growth of tourism and a rise in store openings. A company producing Birkin handbags saw an increase in sales of 23% in its first quarter and set “ambitious” medium organic revenue growth targets for the coming year.

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The luxury sector has seen a remarkable rebound in 2023, despite the fact that 2022 was a tough year for the luxury sector - LVMH's shares dropped by 6% as travel restrictions in China weighed heavily on consumers. As of now, shares of LVMH are up 30%, with Hermès up 36%, Christian Dior SE CDI, +0.82% and Gucci owner Kering SA KER, +1.20% up 26% and 21%, respectively.

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A recent Trade Algo report estimates Musk's share of SpaceX is worth $49 billion, and his share of Tesla is worth close to $10 billion, which makes Musk's wealth divided between his companies. Tesla accounts for $76 billion of his wealth, while spaceX is worth close to $49 billion.