Bernard Arnault experiences a significant loss of more than $11 billion in a single day, which has narrowed the gap between his fortune and that of Elon Musk, the world’s second-richest person.
The LVMH founder, known for his luxury brands such as Louis Vuitton, Moet & Chandon and Christian Dior, has enjoyed steady growth in his wealth for much of 2023, thanks to rising share prices of European luxury companies.
Last Tuesday, however, Arnault experienced a setback. LVMH shares fell, resulting in a loss of around $30 billion for the European luxury sector.
Despite this liquidation, the French billionaire still boasts a net worth of $191.6 billion, according to the Bloomberg Billionaires Index. So far this year, it has managed to accumulate an additional $29.5 billion.
This drop in the market has led to a narrowing gap between Arnault’s fortune and Elon Musk, bringing them closer to just $11.4 billion difference.
The decline in LVMH’s share price comes after a prolonged period of growth, as they have risen 23 percent over the year.
Morgan Stanley analysts attending a luxury conference in Paris reported a “relatively more subdued” performance in the United States. Investors are also expected to be more selective with luxury European stocks, due to concerns about slowing growth in the United States, according to Matt Garland and Adam Cochrane, analysts at Deutsche Bank AG.