Fashion’s Billionaires

These fashionistas make a few bucks every time you go for a run, try on some jeans or buy a new pair of shades.

f hemlines suggest whether the stock market goes up or down, most economic indicators say it’s likely we’ll be looking at longer skirts for the foreseeable future.

But even if the economy doesn’t show us more leg for a while, the fortunes of fashion billionaires–who decide what we wear, where we buy it and what bag and shoes goes with it–should remain relatively flush. Though most of the moguls have seen their personal balance sheets falter in the past 12 months, they have seen modest bumps thanks to the market rally since March.

The richest man in fashion is, naturally, the richest man in France. Bernard Arnault had a nest egg worth $16.5 billion in March when Forbes published the list of the World’s Billionaires–and is worth even more today as shares of his publicly traded fashion firm LVMH rose 30% since early March.

Arnault used $15 million from his father’s construction business to buy Christian Dior ( CHDRF.PK – news – people ) in 1985. Today he controls several high-end brands–including Tag Heuer, Moet Hennessy, Dom Perignon, Fendi and Louis Vuitton–via LVMH. He also bought Princess Yachts, one of Britain’s oldest luxury motorboat manufacturers, last summer and picked up yacht builder Royal van Lent soon after.

Fellow Frenchman Francois Pinault had a $7.6 billion fortune when World’s Billionaires was published, and has gotten richer since. His stake in PPR, which owns labels Gucci, Yves Saint Laurent and Bottega Veneta, has risen almost 30% since early March.

Bernard Arnault
LVMH

$16.5 billion

Father made small fortune in construction; Arnault put up $15 million from that business to buy Christian Dior in 1985. Today the richest man in France controls several high-end brands–including Tag Heuer, Moet Hennessy, Dom Perignon, Fendi and Louis Vuitton–via publicly traded LVMH; shares now up 30% since early March. Bought Princess Yachts, one of Britain’s oldest luxury motorboat manufacturers, last summer; picked up yacht builder Royal van Lent soon after. Son, Antoine, and daughter, Delphine, sit on LVMH board.

Philip Knight

Nike

$8.2 billion

Oregon track star teamed up with coach to start shoe company in 1964; today largest sports footwear, apparel company in the world. Sales: $18.6 billion in fiscal 2008. Shares hammered in the past year as cash-strapped consumers hold off on buying a new pair of sneakers. Organic growth becoming difficult; acquired English soccer-wear firm Umbro for $565 million last year. Stanford University’s business school broke ground on its new campus, the Knight Management Center, last September; personally pledged $105 million to the project.

Francois Pinault

PPR

$7.6 billion

Majority shareholder of luxury goods group PPR (formerly Pinault-Printemps-Redoute), whose brands include Gucci, Yves Saint Laurent and Puma. Group also owns more-affordable catalog brands Lerner and Chadwick’s. Pinault also owns Chateau Latour, a winery that’s been around since 1331, and auction house Christie’s, which is restructuring itself and cutting staff amid the downturn. Owns vast personal art collection.

Fisher Family

Gap

$4.9 billion

Doris and Donald Fisher founded music-and-jeans store Gap in San Francisco 1969; took public 1976. Handed control of company–and nearly half their stock–to sons John, Robert and William in 2004. Company plans to close or downsize some of its 3,100 stores, open new ones; annual sales down 2.5% to $15.8 billion since 2004. Doris and Donald own a large contemporary art collection.

Ralph Lauren

Polo Ralph Lauren

$3 billion

Clothing connoisseur has seen his fortune falter as “recessionista” shoppers shun luxury fashions; Polo Ralph Lauren shares down almost 30% since last summer. Bronx native worked first job at Brooks Brothers, left business school to design ties for Beau Brummel 1967. Launched Polo later that year with $50,000. Sold 28% of company to Goldman Sachs in 1994 for $138 million; took public three years later. Today classic designs span men’s and women’s clothing, luggage, furniture, fragrances; now launching first line of watches with Compagnie Financiere Richemont.

James Jannard

Oakley

$2.2 billion

Oakley sunglasses founder fulfilling lifelong passion for filmmaking, photography–and trying to build a new optics fortune in the process. Founded Red Digital Cinema in 2005; firm is the first to offer “affordable” high-definition digital cinema cameras to the masses. Red One camera sells for $17,500. Elite Hollywood directors–including Peter Jackson (Lord of the Rings), Steven Soderbergh (Ocean’s Eleven)–using Red Digital equipment on set. Spent 32 years developing cutting-edge optics technology; some Oakley glasses can withstand a shotgun blast. Employees dubbed him “mad scientist” in the 1980s. Finalized sale of Oakley to Italian design firm Luxottica late 2007; personally netted $1.2 billion.

Leslie Wexner

Limited Brands

$1.7 billion

Ohio State law school dropout started women’s sportswear store in 1963 with $5,000 loan from aunt. Took Limited Brands public 1969. Today company owns Victoria’s Secret, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle and Henri Bendel brands. Sold 75% interest in Express brand to Golden State Capital for $600 million in 2007 to focus on higher-margin lingerie, beauty product operations.

Jim Davis

New Balance

$1.6 billion

New Balance Arch founded in 1906 to correct orthopedic foot problems. Davis bought the company on day of Boston Marathon 1972. Shunned expensive endorsement deals with high-profile athletes, focused on selling comfort and performance to die-hard runners. Sales exceeded $1.6 billion in 2007; company makes 25% of its shoes in U.S. Expanding business to athletic equipment (lacrosse, hockey, soccer); bought Vital Apparel Group last December.

Richard A. Hayne

Urban Outfitters

$950 billion

Lord of the hipsters missed the World’s Billionaires list in March after Urban Outfitter’s stock fell about 55% between August and March. Recently returned to billionaire status amid the market rally since March. Adding to existing brands–Urban Outfitters, Free People, Anthropologie–with high-end gardening store Terrain; targets middle-age, suburban women with disposable income. Attributes firm’s success to hiring young employees.

Roger Wang

Golden Eagle Retail Group

$800 million

Took over as manager of a Thrifty Drug Store in Los Angeles after immigrating to U.S. 1971. Education: studied at Chinese Culture U. in Taiwan 1969, M.B.A. from Southeastern Louisiana 1973. Started Golden Eagle Retail Group 1992; look public 2006. Today majority of wealth tied up in company; owns majority of company’s stock. Missed the Forbes list of the World’s Billionaires in March; today is worth more than $1 billion after shares of Golden Eagle have risen 115% since March.