The world’s richest man, Bernard Arnault, saw $11.2 billion of his fortune go in a single day due to worries that the slowing US economy will reduce demand for high-end items.
The creator of LVMH, which produces Louis Vuitton purses, Moet & Chandon champagne, and Christian Dior gowns, saw his fortune soar during the most of 2023 as the share prices of European luxury corporations rose.
He gave up some of those gains back on Tuesday. In a larger slump that cost the European luxury industry $30 billion, LVMH shares dropped 5% in Paris, the biggest in over a year.
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According to the Bloomberg Billionaires Index, the French billionaire still has a net worth of $191.6 billion despite the selloff. This year, he has added $29.5 billion.
The difference in wealth between Arnault and Elon Musk, the second-richest person in the world and the CEO of Tesla Inc., has narrowed to only $11.4 billion.
The share price of LVMH had been rising steadily before to Tuesday’s collapse; it is still up 23% for the year. A 27% increase has been seen in the MSCI Europe Textiles, Apparel & Luxury Goods Index.
According to Morgan Stanley analyst Edouard Aubin, attendees at a high-end conference in Paris highlighted a “relatively more subdued” performance in the US.
In a note, analysts Matt Garland and Adam Cochrane of Deutsche Bank AG predicted that investors would choose European luxury companies more carefully due to the US economy’s sluggish growth.