Billionaire Bernard Arnault Suffers Biggest Wealth Loss of 2024
Bernard Arnault, a French businessman, has lost more money this year than anybody else on the Bloomberg Billionaires Index, while demand for luxury products continues to drop.
Based to the ranking of the world’s 500 wealthiest people, the founder of fashion-to-Champagne behemoth LVMH saw his fortune fall by $20 billion to $187 billion during the year. This week’s terrible profits caused the company’s shares to decline and Arnault’s losses displaced those of Zhong Shanshan, the richest man in China.
Despite a more significant one-day drop, Elon Musk, the richest man on the world, has increased his value by 5% this year. Following the release of its disappointing quarterly earnings on Wednesday, which led many investors to reduce their price predictions, this electric car maker’s stock saw a 12% decline, the most in over four years. That resulted in a $21.7 billion drop in the co-founder of Tesla Inc.’s net worth.
Musk’s one-day breakdown, which has now reduced his value to $240.5 billion, places it as the fifth-largest market-driven loss in the net worth index’s 12-year history. Despite the drop, he is still roughly $37 billion richer than Amazon.com Inc.’s Jeff Bezos, who came in second.
The Impact of Declining Luxury Demand on Bernard Arnault and LVMH
Arnault, 75, lost his title as the richest person in the world and is currently placed third when the demand for luxury products surged globally due to the outbreak last month. Meanwhile, Zhong sees increasing competition and PR difficulties at his huge bottled water company, Nongfu Spring Co., putting him in danger of losing the top position in his native nation, which he has held for nearly three years.
China’s finances, on which the luxury sector has long depended, are the primary cause of Arnault’s financial downfall. For a group that has proven to be among the most resilient, LVMH’s sales in the region, including China, fell 14% in the most recent quarter. Richemont, the South African billionaire Johann Rupert’s company that owns the Cartier jewelry brand and Burberry Group Plc, also offered evidence that the luxury bubble is rapidly popping.
On Wednesday, Francois Pinault’s 87-year-old rival Kering SA in France issued a warning, estimating that its profit in the second half of the year may drop by roughly 30%. With the billionaire’s son’s income having halved over the past three years, the luxury company has been battling to reclaim its most successful brand, Gucci.
For Arnault, the financial crisis coincides with the promotion of his five children to senior positions at LVMH, along with a number of deals through the group’s private equity firm, L Catterton.
