2023-10-20 11:30:29
The vagaries of the market
The year 2023 appears to be a roller coaster for billionaires. After an exceptional year 2022, Bernard Arnault is now seeing his fortune melt away. Indeed, this reached $212 billion at the start of summer 2023. But since then, the situation has changed for the boss of LVMH. A dizzying loss of 60 billion dollars in just three months! Meanwhile, Elon Musk rakes in another 89 billion, Jeff Bezos 45 billion, and the list goes on.
The excitement around AI is propelling tech giants to unprecedented financial heights. They seem to be riding a wave of success, while the ship of luxe take water. The technology sector, on the other hand, following encountering difficulties, is booming.
The erosion of Bernard Arnault’s fortune
The main reason for this decline? LVMH stock market performance. After shining in the post-Covid period, the world leader in luxury seems to have hit a plateau. Decreasing sales growth, unmet expectations, luxury seems to be losing a little of its shine. Thus, leather goods, with Louis Vuitton, are content an increase of only 9% compared to 11% earlier in the year. Worse still, wines and spirits are experiencing a real hangover with a drop of 14% over the quarter, and even 21% for cognac.
Rampant inflation also plays a role. LVMH management discusses budgetary pressures impacting consumers. Especially younger customers, who are turning to more affordable brands. Despite everything, Bernard Arnault remains the largest fortune in France, by far!
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