The world’s richest man, Bernard Arnold, wiped $11.2 billion off his fortune in a single day.
The founder of LVMH – whose portfolio includes Louis Vuitton handbags, Moët & Chandon champagne and Christian Dior gowns – saw his wealth balloon through much of 2023 as the European luxury giant’s share prices soared.
On Tuesday, he gave back some of those gains. LVMH shares fell 5% in Paris – more than a year on – amid a broader slump that wiped about $30 billion from the European luxury sector.
Even with the sale, the French billionaire still has a net worth of $191.6 billion, according to the Bloomberg Billionaires Index. He has raised $29.5 billion so far this year.
The gap between the wealth of Arnold, the world’s second richest man, and Tesla Inc’s Elon Musk has narrowed to just $11.4 billion.
Tuesday’s defeat came after a long rally in LVMH’s share price, which is still up 23% for the year. The MSCI Europe Textiles Apparel and Luxury Goods Index rose 27%.
Attendees at a luxury conference organized by Morgan Stanley in Paris flagged a “relatively modest” performance in the U.S., according to Edward 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 pick more European luxury stocks, as slowing growth in the U.S. is a concern.