Bernard Arnault loses nearly $10 billion amid LVMH share crash

In October 2024, LVMH, the luxury goods conglomerate based in France, reported a concerning 3% drop in its sales for the third quarter, amounting to €19.1 billion ($21 billion). This decline has had a direct impact on Bernard Arnault, the company's CEO, who saw his net worth decrease by $8 billion as a result of falling stock prices. This situation is particularly striking given that Arnault's wealth had peaked at an impressive $231 billion in March 2024, making him the richest person in the world at that time. The downturn in LVMH's sales is largely attributed to weak consumer spending, especially among Chinese buyers, who have been less inclined to purchase luxury goods amid ongoing economic uncertainties. Jean-Jacques Guiony, LVMH's chief financial officer, noted that the current geopolitical and macroeconomic climate may be affecting consumer behavior, leading to a significant drop in sales volumes. Additionally, the company's core fashion and leather goods division experienced a 5% decline in sales, marking the first time this division has reported falling sales since the pandemic in 2020. This trend raises concerns about the overall health of the luxury sector and the potential long-term implications for LVMH and its brands. Despite these challenges, Arnault remains one of the wealthiest individuals globally, with a net worth of approximately $182 billion. However, the recent financial setbacks highlight the volatility of the luxury market and the need for LVMH to adapt to changing consumer preferences and economic conditions.