Bernard Arnault, the world’s sixth-richest person, saw his fortune tumble by $11.9 billion on Tuesday after LVMH Moët Hennessy Louis Vuitton delivered a disappointing first-quarter earnings report that sent shockwaves through the luxury industry.
LVMH’s organic revenues dropped 3% to $23 billion (€20.3 billion), down from $23.4 billion (€20.7 billion) a year ago and well below analysts’ expectations for a 2% rise, according to Reuters.
The miss triggered an 8% decline in LVMH’s share price, its steepest single-day drop in years.
The fallout briefly dethroned LVMH as the world’s most valuable luxury company, ceding the top spot to rival Hermès, which investors view as more insulated from macroeconomic volatility. The market rout also dragged down shares of other luxury giants, including Prada, Salvatore Ferragamo, Kering, Richemont, and Brunello Cucinelli.
LVMH’s wine and spirits segment was hit hardest, plunging 9% to $1.5 billion amid softening cognac demand in the U.S. and China and lingering uncertainty over trade tariffs. Yet the company’s flagship fashion and leather goods division, which includes Louis Vuitton, Dior, Fendi, and Loro Piana, suffered the steepest loss in dollar terms, falling over $400 million to $11.4 billion on a 5% drop.
Other key segments also faltered: selective retailing, which includes Sephora and Le Bon Marché, declined 1% to $4.7 billion, while perfumes and cosmetics fell 1% to $2.5 billion. Watches and jewelry, however, anchored by Tiffany & Co., Bulgari, and TAG Heuer—held steady year-over-year.
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Geographically, only Europe posted growth, with sales up 2%. The Asia market (excluding Japan), which accounts for nearly a third of LVMH’s revenue, dropped 11%, while U.S. sales fell 3%. Japan, representing 9% of revenue, declined a modest 1%.
“In a disrupted geopolitical and economic environment, LVMH remains both vigilant and confident,” the company said in a statement. It reiterated its long-term strategy of investing in product quality, innovation, and selective distribution despite near-term headwinds.
Arnault, chairman and CEO of LVMH, now holds an estimated net worth of $145.8 billion as of April 16, per Forbes’ Real-Time Billionaires list. While his empire spans 75 fashion and beauty brands, including Louis Vuitton and Sephora, the earnings stumble underscores mounting pressure in the aspirational luxury space.
In recent years, LVMH has made landmark moves, including its $15.8 billion acquisition of Tiffany & Co. in 2021 and a €200 million donation to Notre-Dame’s restoration. But as global demand cools and luxury recalibrates, even the empire of the “wolf in cashmere” is not immune to market realities.
