- Bernard Arnault, the founder, president and CEO of LVMH saw his fortune collapse on Tuesday to the tune of $11 billion.
- Arnault’s net worth was hit by a 5% drop in LVMH’s share price.
- A market rout hit luxury retail stocks on Tuesday on fears of a slowdown in consumer spending in the United States.
Bernard Arnault, the world’s richest person, saw his fortune wiped out by $11.2 billion on Tuesday, narrowing his lead over Elon Musk, according to the Bloomberg Billionaires Index.
The retail mogul – now worth $192 billion – has a $12 billion lead over Musk’s $180 billion fortune, up from $21 billion on Monday, according to Bloomberg.
Arnault’s net worth has been hit by a market rout in the luxury sector on fears that US spending could slow amid economic uncertainty.
The uncertainty sent shares of LVMH Moët Hennessy Louis Vuitton, or LVMH – of which Arnault is chairman and CEO – plummeting 5% to 834.2 euros, or $900, on Tuesday.
The Frenchman derives his wealth from a 97.5% stake in the holding company of luxury fashion brand Christian Dior which controls 41.4% of LVMH.
Even after the one-day rout, Arnault is still up nearly $30 billion this year so far, according to Bloomberg.
He has seen his wealth soar this year as LVMH stock prices jumped on expectations that China’s economic reopening after nearly three years of strict COVID-19 restrictions will lead to strong demand for products. luxury.
In April, LVMH became the first European company to cross the $500 billion market valuation mark.
Arnault also became the third person – after Tesla CEO Elon Musk and Amazon founder Jeff Bezos – to reach $200 billion in net worth in the same month.
LVMH shares are up about 23% year-to-date.
LVMH did not immediately respond to an Insider’s request for comment sent outside of normal business hours.
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