Billionaire Bernard Arnault, the second-wealthiest person in the world, has purchased €215 million ($230 million) worth of LVMH shares following the luxury conglomerate’s disappointing earnings report in late July. This move by Arnault’s Financiere Agache and Christian Dior SE vehicles happened just three days after the earnings report, as shown in French regulatory filings. The luxury conglomerate’s stock has since experienced a 14% decrease due to various economic challenges, such as slowdowns in China and the US, persistent inflation, and rising interest rates.

Currently, Arnault and his family already own almost 48% of LVMH shares and hold approximately 64% of the voting rights. The French businessman regularly invests in LVMH stock, except during the blackout periods surrounding earnings reports. Although a representative for Arnault declined to provide comments on the recent purchases, his increased investment in the company is evident.

LVMH’s second-quarter results disclosed a decline in organic revenue in the US, raising concerns among investors. Consequently, shares dropped by 5.2% in the next trading session, impacting not only the luxury sector but also the CAC 40 Index. In August, LVMH experienced its largest monthly decline since December, which caused it to lose its position as the biggest European company by market value. Danish drugmaker Novo Nordisk A/S surpassed LVMH due to the success of its Ozempic obesity treatment. These developments have resulted in a decrease in Arnault’s wealth from a record $212.4 billion in mid-July to $170.4 billion as of Thursday, ranking him second behind Elon Musk on the Bloomberg Billionaires Index.

Despite these recent setbacks, LVMH shares remain up approximately 8.8% for the year, indicating that the company is still performing well overall. It will be interesting to observe how Arnault’s increased investment in LVMH will impact the company’s future and whether it can help recover the stock’s value. Only time will tell if this strategic move by the luxury magnate proves to be a wise investment.

Here are two useful links related to the article:

1. LVMH Official Website
2. Bloomberg Billionaires Index