Bernard Arnault, chairman and CEO of LVMH Moët Hennessy Louis Vuitton, has seen his fortune shrink by $15.1 billion in 2025, reflecting mounting challenges for the global luxury goods industry.
As of April 12, Arnault’s net worth had dropped 8.6% since the start of the year, despite a modest daily uptick of $1.91 billion. The downturn shows the vulnerabilities of a sector long seen as resilient, but now grappling with cooling demand and renewed geopolitical tensions.
LVMH, the world’s largest luxury group with brands like Louis Vuitton, Dior, TAG Heuer, and Dom Pérignon, generated €84.7 billion ($91.6 billion) in revenue in 2024. About a quarter of those earnings came from the United States. Yet the first 70 days of President Donald Trump’s second term have rattled investor confidence. Since his January 20 inauguration, LVMH’s stock has fallen nearly 13%, in sharp contrast to France’s CAC 40 index, which gained roughly 3% in the same period.
The decline follows fears over new U.S. tariffs targeting European goods. Trump is expected to announce fresh trade measures on April 17, and while the exact scope remains unclear, luxury conglomerates like LVMH are bracing for a potential hit. Arnault had previously expressed optimism about Trump’s return to office, noting a “wind of optimism” in the U.S. and praising the warm reception luxury brands received there.
What to know
The luxury market was already entering 2025 on unsteady footing. China’s demand for luxury goods contracted by 22% in 2024, driven by economic uncertainty and shifting consumer behavior. Once considered a cornerstone of the industry’s growth, Chinese consumers are now tightening their belts, reducing discretionary spending, and gravitating toward more value-conscious brands.
Meanwhile, the U.S. economy is slowing, further complicating the picture. Even before the looming tariffs, analysts warned of “luxury fatigue” among consumers. After years of strong growth fueled by post-pandemic splurges, shoppers are now pushing back against sky-high prices and a perceived lack of innovation. Several luxury companies, including LVMH, have scaled back profit forecasts for the first half of 2025.
Although markets initially rallied when Trump delayed tariffs for certain countries (excluding China), most luxury stocks, including LVMH, failed to recover fully from earlier losses. The broader sentiment suggests that even if tariffs are postponed, structural challenges like sluggish global growth and evolving consumer tastes are here to stay.
Still, LVMH remains a strong force. Its diverse portfolio, global reach, and strong brand equity offer a cushion against immediate shocks. The company is actively expanding in alternative markets like Southeast Asia, India, and the Middle East, aiming to reduce its dependency on China and the U.S.
