Bernard Arnault has lost more wealth than any billionaire in 2024

French tycoon Bernard Arnault’s net worth has plunged this year by more than anyone else’s on the Bloomberg Billionaires Index, as demand for luxury goods continues to sour. 

The founder of fashion-to-Champagne conglomerate LVMH has seen his fortune drop by $20 billion during the period to $187 billion, according to the ranking of the world’s 500 wealthiest people. After the company’s shares took a beating on disappointing results this week, Arnault’s losses surpassed the $18 billion racked up by China’s richest man, Zhong Shanshan.

Meanwhile, Elon Musk, the world’s richest person, suffered a bigger single-day drop, though he’s still up 5% for the year. On Wednesday, the Tesla Inc. co-founder’s wealth plummeted $21.7 billion after the electric-car maker reported disappointing quarterly results, prompting several analysts to cut their price targets and sending its shares down 12%, the most in almost four years.  

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Musk’s one-day slump was the fifth-largest market-driven drop in the 12-year history of Bloomberg’s wealth index, trimming his fortune to $240.5 billion. Even with the decline, he remains about $37 billion ahead of Amazon.com Inc.’s Jeff Bezos in second place.

The 75-year-old Arnault has tumbled to No. 3 from being the world’s richest individual as recently as last month, a position he attained after the pandemic when global demand for luxury goods soared. Zhong, meanwhile, is at risk of losing the top position in his home country — which he’s held for almost three years — amid intensifying competition and public relations challenges at his bottled water giant, Nongfu Spring Co. 

The decline in Arnault’s fortune is rooted in the economic malaise in China, a market the luxury industry has long relied upon. LVMH’s sales in the region that includes China tumbled 14% in the latest quarter, a disappointment for a group that’s been among the most resilient so far. Signs that the luxury bubble is quickly deflating have also come from Burberry Group Plc and Cartier jewelry brand owner Richemont, controlled by South African billionaire Johann Rupert. 

French rival Kering SA, founded by Francois Pinault, 87, on Wednesday warned its profit could fall by about 30% in the second half of the year. The luxury firm, which is run by the billionaire’s son, has been struggling to turn around its biggest brand, Gucci, as his fortune has halved over the last three years.

For Arnault, the downturn coincides with the placing of his five children in key positions at LVMH and a series of deals through the private equity firm, L Catterton, that’s backed by the group.