French luxury magnet Bernard Arnault saw his fortune decline by $11.2 billion on Tuesday after fears of a slowing U.S. and China economy rattled global luxury stocks. Nevertheless, he continues to remain the world’s richest man, with a substantial fortune of $191.6 billion, according to the latest Bloomberg Billionaires Index.
In 2023, the stocks of European luxury brands have recorded a remarkable surge, thanks to rising demand in the US and China. This has helped Arnault to add $29.5 billion to his net worth this year, further consolidating his position as the world’s richest man.
However, recent concerns about a slowing U.S. and China economy have ignited fears of reduced demand for luxury products. These fears triggered a 5 percent decline in LVMH’s shares in Paris resulting in a $30 billion loss to European luxury brands on Tuesday.
Tuesday’s decline represented the largest drop the company has experienced in over a year. However, LVMH’s stock price remains 23 percent higher than it was at the beginning of the year.
The significant reduction in Arnault’s fortune narrowed the gap between him and the world’s second-wealthiest person, Elon Musk, to $11.4 billion. Elon Musk, who previously overtook Arnault to become the world’s richest person, lost his crown after an eventful takeover of Twitter.
Bernard Arnault, the founder of LVMH, has been an influential figure in the world of luxury brands. LVMH houses renowned luxury brands like Louis Vuitton and Christian Dior, among others.
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