Bernard Arnault, the world’s richest person, saw his fortune wiped out in a single day due to fears that a slowing US economy could depress demand for luxury products. The founder of LVMH, whose products include Louis Vuitton handbags, Moet & Chandon Champagne, and Christian Dior dresses, saw his fortune grow during 2023 as share prices of European luxury companies rose. He lost around $11 billion in a single day.
On Tuesday, he surrendered some of his gains. LVMH shares plunged 5% in Paris, the most in more than a year, as part of a broader decline that cost the European luxury sector $30 billion.
Despite the drop in value, the French billionaire is still worth $191.6 billion, according to the Bloomberg Billionaires Index. So far this year, he has added $29.5 billion.
The wealth disparity between Arnault and Tesla Inc.’s Elon Musk, the world’s second-richest person, has reduced to $11.4 billion.
The crash on Tuesday followed a lengthy surge in LVMH’s share price, which is still up 23% for the year. The MSCI Europe Textiles, Apparel, and Luxury Goods Index has increased by 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 report, Deutsche Bank AG analysts Matt Garland and Adam Cochrane stated that they expect investors to become more choosy with European luxury companies, citing concerns about slowing growth in the United States.