World's Richest Man, Louis Vuitton's Bernard Arnault Loses $11 Bn After Stock Rout

Bernard Arnault, the boss of luxury giant LVMH and the world’s richest man, had $11.2 billion 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, Moet & Chandon Champagne and Christian Dior gowns – had seen his wealth balloon for most of 2023 as share prices of European luxury companies surged, Bloomberg reported.

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.

Also Read: Louis Vuitton’s Bernard Arnault Auditions His Children, Takes Opinion To Run Luxury Empire

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.

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%, Bloomberg report added.

Attendees at a luxury conference in Paris organized by Morgan Stanley flagged a “relatively more subdued” performance in the US, according to Edouard Aubin, an analyst at the investment bank.

Deutsche Bank AG 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.

In January, the 74-year old reshuffled top management at his luxury goods empire, tightening his family’s grip with the appointment of his daughter Delphine to lead Christian Dior, and naming a new boss for Louis Vuitton.

Bernard Arnault is worth an estimated $177.7 billion, according to the Bloomberg Billionaires Index. He topped the list for the first time in December and has remained ensconced in that position ever since after surpassing Elon Musk, whose fortune has dwindled.