Lvmh, Arnault strengthens control and exceeds the 50% threshold

Tycoon Bernard Arnault further strengthened his control over Lvmh by taking the family stake above the 50% threshold, as anticipated in recent months. The family holding company has, in fact, increased its stake to 50.01%, from 49.77% at the end of 2024, according to the group's announcement. The total voting rights now amount to 65.94%. "It is a testimony to the strong confidence of Bernard Arnault and his family in the future of Lvmh," said a family spokesperson.

The strengthening took advantage of the weakness of the stock, which was penalised by the slowdown in the luxury sector.The shares lost almost 38% from their all-time high in April 2023, when the sector was still benefiting from the post-pandemic demand boom.

Since the beginning of the year, the stock has fallen about 13%, bringing the capitalisation of the Parisian group to EUR 280 billion (USD 330 billion). However, Lvmh remains the number one company by market value in the French CAC 40 index and number four in the broader European Stoxx Europe 600 basket.

Arnault, 76, had anticipated during the presentation of the annual results that the family share would exceed 50 per cent by 2025. In the final quarter of last year, the group underperformed in the key division that includes the Louis Vuitton and Christian Dior brands, triggering sell-offs on the stock and those of competitors. The wines and spirits division also posted its third consecutive year of declining sales, penalised in particular by the collapse in demand for Hennessy Cognac.

With an estimated wealth of around USD 185 billion, Arnault ranks seventh in the Bloomberg Billionaires Index, behind six US technology tycoons led by Elon Musk.