Bernard Arnault, the world’s richest person, loses his $11 Billion in a single day due to fears that a slowing US economy will dampen demand for luxury goods.
The founder of LVMH, whose products include Louis Vuitton handbags, Moet & Chandon Champagne, and Christian Dior gowns, saw his fortune grow throughout 2023 as share prices of European luxury companies rose.
On Tuesday, he gave back some of those gains. LVMH shares fell 5% 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 selloff, the French billionaire still has a net worth of $191.6 billion, according to the Bloomberg Billionaires Index. He’s added $29.5 billion so far this year.
As Bernard Arnault loses $11 Billion in a single day, the gap between the fortunes of Arnault and Tesla Inc.’s 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% for the year. The MSCI Europe Textiles Apparel & Luxury Goods Index has surged 27%.
According to Edouard Aubin, an analyst at Morgan Stanley, attendees at a luxury conference in Paris highlighted a “relatively more subdued” performance in the US.
In a note, Deutsche Bank AG analysts Matt Garland and Adam Cochrane stated that they expect investors to become more selective with European luxury stocks, citing concerns about slowing growth in the United States.
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Bernard Arnault is a French business magnate, investor, and art collector. He is the founder, chairman, and chief executive officer of LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company. Arnault and his family have an estimated net worth of US$240 billion as of April 2023, according to Forbes, making him the wealthiest person in the world.
