Fashion Moguls Arnault and Ortega gain $5 billion in 1 day 

Bernard Arnault and Amancio Ortega, the powerhouse owners of luxury fashion brands Louis Vuitton and Zara respectively, witnessed a combined gain of $5 billion in a single day, topping Forbes’ list of top gainers at the close of market trading on Thursday, July 11, 2024.  

According to data, Arnault’s net worth surged by $3.6 billion while Ortega’s increased by $1.4 billion, attributed to modest increases in the value of their respective company shares. 

Despite facing significant challenges this year, particularly for Arnault, fashion stocks have shown resilience.

Arnault’s LVMH Moët Hennessy Louis Vuitton, a conglomerate renowned for its portfolio of 75 prestigious fashion and cosmetics brands, including Louis Vuitton and Sephora, has encountered turbulent times.

What to know 

This was exacerbated by a surprising election result in France, which adversely impacted LVMH’s stock. On Monday, following the parliamentary elections, LVMH saw its U.S.-listed shares dip by over 3%, even as the S&P 500 index edged up by 0.1%.  

The elections resulted in an unexpected outcome, with the leftist New Popular Front securing the majority of seats, creating uncertainty that investors typically dislike. This electoral surprise initially caused a market reaction, but LVMH shares managed a slight appreciation later, contributing to Arnault’s gain. 

Arnault’s business acumen and strategic decisions have significantly shaped LVMH’s trajectory. In 2021, LVMH acquired American jeweller Tiffany & Co. for $15.8 billion, marking the largest luxury brand acquisition ever.  

His holding company, Agache, backs Aglaé Ventures, a venture capital firm with investments in notable companies like Netflix and TikTok’s parent company, ByteDance. Despite recent market volatility, Arnault’s net worth now stands at $194.8 billion. He recently bought some shares in South Africa’s richest man-Johann Rupert’s luxury Richemont brand. 

What we know 

In contrast, Amancio Ortega’s Inditex, the parent company of Zara, has shown remarkable performance. Over the past six months, Inditex’s stock price appreciated by 21%, significantly outperforming LVMH’s 5% gain. Ortega, worth $113.4 billion, remains one of the wealthiest clothing retailers globally.

A pioneer in fast fashion, Ortega co-founded Inditex with his ex-wife Rosalia Mera in 1975. Today, Inditex boasts eight brands, including Massimo Dutti and Pull & Bear, and operates 7,500 stores worldwide. Ortega typically earns over $400 million in dividends annually. 

The company has also seen significant leadership transitions. In November 2021, Inditex announced that Ortega’s daughter, Marta Ortega Pérez, to become chairperson in April 2022. 

The gains experienced by Arnault and Ortega show the appeal and robust business models of their respective companies, even amid market fluctuations and political uncertainties.