Tuesday’s defeat came after a long rally in LVMH’s share price
Washington:
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.
Hudson Carrington is a contributor at Angperyodiko.ca, covering a wide range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. He focuses on delivering clear, accurate, and reader-friendly reporting that helps audiences stay informed about current events and emerging developments. Hudson is committed to presenting useful information, balanced perspectives, and stories that matter to Canadian readers, making complex topics easier to understand and relevant to everyday life.