Francois Pinault, the 88-year-old founder of Kering, has fallen out of the top 100 richest individuals globally as his son faces challenges revitalizing Gucci, the luxury conglomerate’s largest brand. For the first time in over a decade, Pinault is now ranked 105th among the world’s wealthiest—a significant drop from his previous position within the top 20% of a 500-person list.
As of November 21, Pinault’s fortune has dwindled to $20.3 billion, marking a decline of two-thirds from its peak in August 2021, when he was ranked 22nd. This represents the largest percentage decrease for anyone remaining on the index during this period. The contraction of the Pinault family’s wealth is notable, even amid a general downturn in the luxury sector, which has struggled with reduced demand for high-end products like designer fashion, fine wines, and cosmetics in China.
Other luxury titans have also seen declines. Bernard Arnault, head of the larger luxury conglomerate LVMH, has slipped from the top of the rankings to fifth place, while Francoise Bettencourt Meyers, the L’Oreal heiress, has dropped to 21st after a long tenure as the world’s richest woman.
Kering, under the leadership of Pinault’s son, Francois-Henri Pinault, has faced particular challenges. He has led the company for nearly 20 years, steering it from a collection of retail ventures to a luxury powerhouse. However, Kering remains heavily reliant on Gucci, a brand whose fortunes have fluctuated in the competitive fashion world. The family holds a 42% stake in Kering, with 59% of the voting power, but the company’s shares have lost nearly half their value in 2024.
Francois-Henri Pinault has committed to revitalizing Gucci, yet 2024 has seen three warnings about slowing sales, the most recent in October. These struggles are expected to drive Kering’s annual profits to their lowest point since 2016, with the company citing significant challenges in Asia impacting Gucci’s performance.
In a letter to shareholders in September, the younger Pinault emphasized the company’s efforts to return to growth, highlighting the intense work being undertaken to create favorable conditions for recovery. Both he and his father are managing partners of Groupe Artemis, the family’s holding company, which manages approximately $42 billion in assets.
Groupe Artemis, where Francois-Henri’s siblings, Laurence and Dominique, hold leadership roles, has a diverse portfolio. This includes renowned vineyards, Christie’s auction house, and contemporary art museums in Paris and Venice. In 2023, Artemis expanded its reach by acquiring a 53.3% stake, valued at $3.7 billion, in the Los Angeles-based Creative Artists Agency, which provides booking services for speakers, including Francois-Henri’s wife, actress Salma Hayek.
Have you read?
The Top 100 Highest-paid CEOs in America.
Countries With Lowest Rate of Economic Growth in 5 Years.
Countries Most in Debt to China.
Most Attractive Cities for Global Talent.
Largest economies in the world by Share of Global GDP.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine’ prior written consent. For media queries, please contact: info@ceoworld.biz