LVMH boss Bernard Arnault, who once reigned as the world’s richest man, is now facing a setback after his wealth dropped by nearly $10 billion in a single day. This shift occurred due to a sharp 7% drop in his company’s share price, following an unexpected decline in third-quarter sales. Specifically, brands like Moët & Chandon, Louis Vuitton, and Tiffany & Co. underperformed in the third quarter of 2024. This 7% decrease in sales has caused Arnault’s net worth to fall by nearly 6%, leaving him with a substantial fortune of $177 billion, placing him as the fifth richest person in the world according to Bloomberg.
It is a notable decline for the 75-year-old, who started the year on a high, becoming the world’s wealthiest person with a net worth of $231 billion in March. Interestingly, while LVMH Moët Hennessy Louis Vuitton holds the top four most valuable wine and Champagne brands in 2024, according to brand valuation consultancy Brand Finance, the sales figures tell a different story.
Sales of the conglomerate’s wine and spirits divison, including Moët & Chandon, Hennessy, Veuve Clicquot, and Ruinart, dropped by 8% over the period. This marks the first time since the COVID-19 pandemic that sales at LVMH, the global leader in French luxury, have declined. Still, there is a silver lining in the form of other sectors that are doing better, such as perfumes and cosmetics, specifically Sephora, which has continued to grow. The company has diversified further with investments in Formula 1 and has has plans to purchase the Paris FC football club.
