The founder of the LVMH company – which brings together 75 international brands, including “Louis Vuitton”, “Christian Dior” and “Fendi” – has witnessed an inflation in the size of his fortune during the current year, with the rise in shares of European companies luxury companies in general.
But with the U.S. federal funds exhaustion date approaching and no final debt ceiling agreement reached, stocks fell on Tuesday, wiping out much of Arnault’s gains, as stocks fell. Shares of LVMH fell 5% in Paris – the biggest drop per share in more than General – amid a broader slowdown that wiped out around $30 billion from Europe’s luxury sector.
LVMH shares are still up 23% since the start of this year.
But even with yesterday’s sale, the French billionaire still has a net worth of $191.6 billion, according to the Bloomberg Billionaires Index. It has managed to add around $29.5 billion so far this year.
The gap between Arnault’s fortune and Tesla’s Elon Musk, the world’s second richest person, has narrowed to just $11.4 billion.
Deutsche Bank analysts said in a note that they expect investors to become more selective with European luxury stocks as growth slows in the United States.
LVMH posted revenue of 21 billion euros ($23.1 billion) in the first quarter of 2023, an increase of 17% year-on-year, more than double market expectations.
In 2022, the company generated revenues of 79.2 billion euros ($87.1 billion), with profits from repeat operations amounting to 21.1 billion euros.
In 2021, the total turnover amounted to 64.2 billion euros, after strong sales and strong demand for bags and other products from consumers after the easing of Corona measures and the opening complete economy.
It should be noted that LVMH is the first European company whose stock market value exceeded 500 billion dollars last April.
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