Bernard Arnault, the world’s richest person, had $11.2 billion, or 5.5 per cent, wiped from his fortune in one day over concerns that a softening US economy will dampen demand for luxury goods.
The founder of LVMH – whose offerings include Louis Vuitton handbags and Christian Dior gowns – had seen his wealth balloon for most of 2023, as share prices of European luxury companies surged.
Watch: Who is Bernard Arnault?
On Tuesday, he gave back some of those gains. LVMH shares fell 5 per cent in Paris – the most in more than a year – amid a broader decline that erased about $30 billion from the European luxury sector.
Even with the sell-off, the French billionaire still has a net worth of $191.6 billion, according to the Bloomberg Billionaires Index. He’s added $29.5 billion to his personal fortune so far this year.
The gap between the fortunes of Mr Arnault and Tesla chief executive Elon Musk, the world’s second-richest person, has shrunk to just $11.4 billion.
Tuesday’s rout came after a lengthy rally in LVMH’s share price, which is still up 23 per cent for the year. The MSCI Europe Textiles Apparel and Luxury Goods Index has surged 27 per cent.
Attendees at a luxury conference in Paris organised by Morgan Stanley flagged a “relatively more subdued” performance in the US, according to Edouard Aubin, an analyst at the investment bank.
Deutsche Bank analysts Matt Garland and Adam Cochrane said in a note that they expect investors to become more selective with European luxury stocks, with slowing growth in the US a concern.
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