Bernard Arnault, the world’s richest person, had US$11.2 billion ($15.11 billion) wiped from his fortune in one day over concerns that a softening US economy will dampen demand for luxury goods.

The founder of LVMH — whose offerings include Louis Vuitton handbags, Moet & Chandon Champagne and Christian Dior gowns — had seen his wealth balloon for most of 2023 as share prices of European luxury companies surged.

On Tuesday, he gave back some of those gains. LVMH shares fell 5% in Paris — the most in more than a year — amid a broader decline that erased about US$30 billion from the European luxury sector.

Even with the selloff, the French billionaire still has a net worth of US$191.6 billion, according to the Bloomberg Billionaires Index. He’s added US$29.5 billion so far this year.

The gap between the fortunes of Arnault and Tesla Inc.’s Elon Musk, the world’s second-richest person, has shrunk to just US$11.4 billion.

Tuesday’s rout came after a lengthy rally in LVMH’s share price, which is still up 23% for the year. The MSCI Europe Textiles Apparel & Luxury Goods Index has surged 27%.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/options/fashion/photo-synthesis?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Photo synthesis</a></b></span>

Attendees at a luxury conference in Paris organized by Morgan Stanley flagged a “relatively more subdued” performance in the US, according to Edouard Aubin, an analyst at the investment bank.

Deutsche Bank AG analysts Matt Garland and Adam Cochrane said in a note that they expect investors to become more selective with European luxury stocks, with slowing growth in the US a concern.

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