French tycoon Bernard Arnault's net worth has fallen more than anyone else on Bloomberg's list of billionaires this year as demand for luxury goods continues to fall, Bloomberg reports.
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The founder of luxury goods conglomerate LVMH is set to see his fortune fall by $20 billion to $187 billion in 2024, according to the World's 500 Richest People list.
Arnault, 75, fell to third place from the world's richest person last month, a position he achieved after the pandemic saw global demand for luxury goods surge.
Arnault's decline in fortunes has been linked to economic instability in China, a market the luxury industry has long relied on. LVMH's sales in the region, which includes China, fell 14% in the latest quarter.
Signs that the luxury bubble is quickly deflating are also coming from Burberry Group Plc and jewelry brand Cartier owner Richemont, controlled by South African billionaire Johann Rupert.
French rival Kering SA, founded by 87-year-old Francois Pinault, warned Wednesday that its profits could fall by about 30% in the second half of the year. The company, run by the billionaire's son, is trying to revive its biggest brand, Gucci, as his fortune has halved over the past three years.
Kering shares fell 10% in Paris on Thursday.
Other billionaires' losses
Zhong Shanshan, China's richest man, also lost more than $18 billion.
Elon Musk, the world's richest person, saw his fortune drop in a single day after growing $11.5 billion in a year.
The Tesla Inc. co-founder's fortune fell Wednesday. fell sharply by $21.7 billion after the electric-car maker reported disappointing quarterly results, sending its shares tumbling 12%, the most in nearly four years.
The drop in Musk's fortune was the fifth-biggest market decline in the 12-year history of the Bloomberg Wealth Index. Musk's net worth fell to $240.5 billion. However, he is still $37 billion ahead of Amazon.com Inc.'s Jeff Bezos, the world's second-richest person.
