Tuesday’s slide came after an extended rally in LVMH’s share price
Washington:
Bernard Arnault, the world’s richest person, was forced to lose $11.2 billion of his fortune in one day over fears that a flagging US economy would dampen demand for luxury goods.
The founder of LVMH – whose offerings include Louis Vuitton handbags, Moet & Chandon champagne and Christian Dior dresses – saw much of his fortune in 2023 as the share prices of European luxury companies soared.
On Tuesday, he gave back some of those gains. LVMH shares fell 5% in Paris — the sharpest in more than a year — amid a broader decline that netted Europe’s luxury sector about $30 billion.
Despite 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 so far this year.
The wealth gap between Arnault and Elon Musk of Tesla Inc., the second richest person in the world, has narrowed to just $11.4 billion.
Tuesday’s slide came after an extended rally in LVMH’s stock price, which is still up 23% for the year. The MSCI Europe Textiles Apparel & Luxury Goods Index is up 27%.
According to Edouard Aubin, an analyst at the investment bank, participants at a luxury conference in Paris organized by Morgan Stanley reported “relatively more muted” developments in the US.
Deutsche Bank AG analysts Matt Garland and Adam Cochrane said in a note they expect investors to become more selective in European luxury stocks amid concerns about slowing US growth.