Bernard Arnault, LVMH’s CEO, has confirmed reports of a small personal stake in Richemont, the Swiss luxury goods company and parent of Cartier and Alaïa.
Mr Arnault in an interview with US news outlet CNBC emphasised his stake is unrelated to LVMH’s corporate strategy. This move comes amid challenging financial results for LVMH, with a 1 percent revenue decrease and 14 percent profit decline in the first half of 2023.
Arnault assured a positive relationship with Richemont’s controlling shareholder, Johann Rupert, and stated the investment is part of his family’s broader portfolio.
“I know, well the owner, Mr. Johann Rupert of Richemont,” Mr Arnault said. “We have a good relationship and I told him that I will never do anything against him. And if I bought some shares, it’s just my portfolio manager put some shares. But it’s a very minor stake and I am very happy,” Arnault iterated. “He has done something fantastic with Richemont, with Cartier, with Van Cleef, and I think he’s independent. He wants to stay independent. And I agree completely on that.”
The stake, however small, does raise questions about future dynamics in the luxury sector, given both companies’ significant presence in the jewellery market. LVMH’s recent performance varied globally, with growth in Europe, US, and Japan, while Asia saw increased spending by Chinese tourists abroad.
