South Africa’s wealthiest man, Johann Rupert, has witnessed a significant surge in his net worth, with a gain of $2.2 billion in less than a month.
As of the market close on Thursday, February 15, 2024, Rupert’s net worth reached $13.4 billion, marking a rise from $11.2 billion recorded on January 18, 2024, according to data from Bloomberg’s Billionaire Index.
The increase in Rupert’s net worth is attributed to the appreciation of his shares in Richemont, the luxury brand he owns. Despite typically maintaining an average valuation of around $12 billion, Rupert’s net worth is now approaching the $14 billion mark. Market data reveals that on a month-to-month basis, Richemont shares surged by 26.34%, climbing from $108 to $136.5.
The surge in Richemont shares correlates with heightened demand for its prestigious jewelry brands, including Cartier and Van Cleef, leading to robust holiday sales.
Despite challenges in the luxury sector, Richemont witnessed an impressive 8% year-on-year sales increase at constant exchange rates for the quarter ending on December 31, 2023. This positive performance surpassed analyst predictions, reaching €5.6 billion ($6.1 billion) and triggering a 10% surge in shares during early trading.
The growth was primarily fueled by robust demand in Greater China and Japan, where sales for the quarter rose by 25% and 18%, respectively. Notably, Richemont experienced an uptick in sales in the challenging US market, defying the broader slowdown observed by peers in the region. This resurgence in the US market helped offset a decline in Europe.
Richemont’s strategic focus on the higher-priced hard luxury sector proved advantageous, offering insulation against the significant slowdown in aspirational and middle-class consumer spending, impacting luxury sales at other companies.
