Bernard Arnault Loses $15.1 Billion Amid Luxury Demand Decline

Bernard Arnault, the chairman and CEO of LVMH, experienced a significant drop in his net worth, losing over $11.9 billion following a disappointing first-quarter earnings report from the luxury goods conglomerate. LVMH's organic revenues fell 3% to $23 billion, missing analysts' expectations for growth, which led to an 8% decline in share price, briefly ceding its title as the world's most valuable luxury brand to Hermès. The company's wine and spirits division was particularly hard-hit, with a 9% decline in sales, while the fashion and leather goods sector also suffered a notable drop. The luxury market is facing broader challenges, including decreased demand in China and fears over potential U.S. tariffs under the Biden administration, which have shaken investor confidence. Analysts have highlighted a slowdown in discretionary spending both in the U.S. and China, suggesting a shift in consumer behavior towards more budget-conscious choices. These developments reflect a growing vulnerability in a sector traditionally viewed as resilient against economic fluctuations.