Bernard Arnault loses $52 billion as the LVMH stock price implodes

Bernard Arnault’s net worth is cratering this year as the LVMH stock price implodes. It has already dropped by over $52 billion to the current $156 billion, making him the 7th richest person on earth after Elon Musk, Larry Page, Sergey Brin, Jeff Bezos, Mark Zuckerberg, and Larry Ellison.

LVMH stock price has slumped amid luxury sales slump

The ongoing retreat in Arnault’s net worth is happening as shares of his company has dropped from €653 in January last year to €463 today.

This retreat has brought its market capitalization from over €350 billion to -€232 billion today. According to Bloomberg, Arnault controls about half of the company.

His net worth today is much lower than the all-time high of $230billion, which he achieved in 2024 when he briefly became the richest person on earth.

The LVMH stock price has slumped amid the ongoing fears that its business will continue slowing in key markets. China, a crucial market, continues to slow this year, a trend that may continue for a while.

Most recently, there are concerns that the ongoing US-Iran war will have an impact on its booming Middle East business. Iran has constantly attacked its neighbors, like Saudi Arabia and the United Arab Emirates, leading to a collapse in tourism in the region.

At the same time, the important wines and spirits business continues to struggle as demand for alcoholic beverages wane. In particular, customers are no longer buying Hennessy Cognac as they did in the past. The company was also affected by Donald Trump's tariffs.

The most recent results showed that LVMH’s annual revenue dropped by 1% last year to €80.8 billion, while its profit fell by 9% to over €17.8 billion.

LVMH’s wine business brought in €5.86 billion in revenue last year, down by 9% from a year earlier. The fashion and leather goods business made €41 billion, also down by 8%, while the perfumes and cosmetics and watches & jewelry made €8.4 billion and €10.4 billion. The selective retailing, which includes its Tiffany business, made €18 billion.

Analysts and investors will focus on the company’s earnings, which will come out on April 12. Analysts expect the results to show that its business weakened in the first quarter amid disruptions in the Middle East.

Other luxury brands stocks have underperformed the market this year. Hermes stock has slumped by 45% from its highest point in April last year and is hovering at its lowest level since October 2023.

Similarly, Kering, the parent company of Gucci, was trading at €254, down by 62% from its all-time high. Other companies like Burberry and Kering have all slumped.

LVMH stock chart | Source: TradingView

Technicals suggest that the LVMH stock price may continue falling in the near term. It has already plunged from a high of 857 euros in May 2023 to the current 467 euros.

The stock has remained below all moving averages on the three-day chart. It also moved below the Major S&R pivot point of the Murrey Math Lines tool at 500 euros.

LVMH has moved below all moving averages and is now along the lower side of the Bollinger Bands tool. Therefore, the stock will likely continue falling as sellers target the Strong, Pivot, Reverse level of the Murrey Math Lines at 375 euros.