Bernard Arnault, the world’s richest man and boss of LVMH, has seen £12.5billion wiped off his family fortune.
The slump has been driven by a fall in shares in luxury goods companies over the past two days amid mounting fears over the outlook for the global economy.
While the row over the US debt ceiling is causing a headache, a wave of Covid infections in China has caused particular concern given demand for expensive luxuries in the country.
Some £45billion has been wiped off the value of the luxury goods sector in recent days.
China fears: Shares in LVMH, which owns Louis Vuitton, whose ambassadors include actress Zendaya (pictured), have fallen nearly 7 per cent on the Paris stock exchange.
Shares in LVMH, which owns Louis Vuitton, whose ambassadors include actress Zendaya (pictured), have fallen nearly 7 per cent on the Paris stock exchange.
Burberry and Birkin bag maker Hermes have also faced a slump.
The slide in LVMH shares has cost the Arnault famiiy – which owns more than 48 per cent of the company – £12.5billion on paper though the stake is still worth £172.5billion.
Analysts said investors would become ‘more selective’ in the crowded luxury market – especially if China decides to enforce lockdown measures again in the face of new Covid variants
