Tuesday’s rout came after a long rally in LVMH stock price
Washington:
Bernard Arnault, the world’s richest person, lost $11.2 billion of his fortune in one day amid fears a slowing US economy could dampen demand for luxury goods.
The LVMH founder – whose offerings include Louis Vuitton handbags, Moët & Chandon champagne and Christian Dior dresses – had seen his wealth swell through most of 2023 as share prices of European luxury companies rose .
On Tuesday, he returned some of those winnings. Shares of LVMH fell 5% in Paris – the most in more than a year – amid a broader decline that wiped around $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. It has added $29.5 billion so far this year.
The wealth gap between Arnault and Tesla Inc.’s Elon Musk, the world’s second richest person, has narrowed to just $11.4 billion.
Tuesday’s rout came after a long rally in LVMH’s share price, which is still up 23% on the year. The MSCI Europe Textiles Apparel & Luxury Goods Index jumped 27%.
Attendees at a luxury conference in Paris hosted by Morgan Stanley reported a “relatively more subdued” performance in the United States, 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 as slowing growth in the United States is a concern .