Bernard Arnault, the world’s richest person, had $11.2 billion wiped from his fortune in one day over concerns that a softening U.S. 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.
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.
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%.
Attendees at a luxury conference in Paris organized by Morgan Stanley flagged a “relatively more subdued” performance in the U.S., 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 U.S. a concern.
—With assistance from Kit Rees and Jack Witzig.
This article was provided by Bloomberg News.