LVMH CEO Bernard Arnault has made serious wealth gains over the course of 2023’s first and second quarters. Just last month, the Frenchman’s growing fortune passed $200 billion for the first time—but, as always, everything that goes up must come down.
On Tuesday, Arnault’s wealth decreased by a staggering $11.2 billion as shares for his French luxury conglomerate fell by five percent, according to Bloomberg. Arnault is still the world’s richest person, though, with a net worth of $192 billion at the time of writing. His cash flow has reportedly increased by $29.5 billion so far this year, leaving a healthy $18.3 billion in his pockets after this recent hit.
LVMH’s share price is still up by 23 percent for the year, though attendees at a recent luxury conference in Paris flagged a “relatively more subdued” performance in the U.S., according to Morgan Stanley analyst Edouard Aubin. Concerns that a softening American economy will dampen demand for luxury goods has caused investors to sell shares in the company at a rapid rate to preserve their gains. With most of Arnault’s wealth tied up in LVMH stock, he’s likely seen the biggest loss of all as a result.
At the same time, LVMH is facing pushback from the residents of Beverly Hills regarding its first Cheval Blanc in the U.S. Preliminary results of a special election that closed on Tuesday show most voters do not support Arnault’s plans for a 115-room hotel at the end of Rodeo Drive.
LVMH just became Europe’s first $500 billion company back in April. One of LVMH’s leading brands, Louis Vuitton, wrapped last year with revenue surpassing $21.8 billion. As of May 24, however, LV’s shares stand at $176.18 (down 1.35 percent). LVMH’s plummeting stock comes amid a broader decline that has diminished $30 billion from the European luxury sector. It sounds like Arnault isn’t the only one in trouble, then.