Bernard Arnault, the CEO of luxury goods giant LVMH, has seen his wealth plummet amid a decline in demand for high-end products.
The French billionaire's fortune has fallen from a peak of $231 billion in late March to $185 billion this week, according to estimates by the Bloomberg Billionaires Index. This represents a drop of approximately 20%, or $46 billion, in just four months.
Despite the significant loss, Arnault remains the world's third-richest person and the wealthiest individual outside of the US. He has frequently traded places with Elon Musk and Jeff Bezos for the top spot on Bloomberg's ranking.
Arnault is the only person in the world's top 15 wealthiest individuals to have experienced a decline in wealth so far in 2024, according to Bloomberg.
Arnault holds a 48% stake in LVMH, the luxury conglomerate responsible for iconic brands such as Louis Vuitton, Christian Dior, Tag Heuer, and Tiffany & Co. The company reported disappointing earnings on Tuesday, with revenue falling 1.3% in the first half of 2024 to 41.7 billion euros (approximately $45.2 billion). Sales of clothing and leather goods, Champagne, and watches and jewellery all experienced a slump.
LVMH attributed the decline to "an overall downturn in consumer spending, retailer destocking and an unfavorable market environment in China" in an earnings release. The company stated that its results indicated a normalisation of demand. The luxury market witnessed a surge following the pandemic but has since faltered.
China's luxury market has experienced a significant downturn, partly due to Chinese shoppers making their expensive purchases overseas, particularly in Japan. There has also been a rise in "luxury shaming" behaviour, with consumers hesitant to buy high-priced status items during periods of economic downturn.
Elon Musk remains the world's wealthiest person, with an estimated fortune of $244 billion, according to Bloomberg. This is significantly lower than its peak of $340 billion in November 2021, according to Bloomberg figures. Former Amazon CEO Jeff Bezos, meanwhile, has an estimated worth of $203 billion.