World's richest person Bernard Arnault's wealth drops by $11 billion — meaning Elon Musk is once again closer to the top spot
Bernard Arnault, the founder, chairman, and CEO of LVMH saw $11 billion wiped off his fortune on Tuesday.
Arnault's net worth was hit by a 5% drop in LVMH's share price.
A market rout hit luxury retail shares on Tuesday over fears of slowing US consumer spending.
Bernard Arnault, the world's richest person, saw $11.2 billion wiped off his fortune on Tuesday, narrowing his lead over Elon Musk, according to the Bloomberg Billionaires Index.
The retail tycoon — now worth $192 billion — has a $12 billion lead over Musk's $180 billion fortune, narrowing from $21 billion on Monday, per Bloomberg.
Arnault's net worth was hit by a market rout in the luxury sector over fears that US spending would be slowing amid economic uncertainties.
The uncertainty sent the shares of LVMH Moët Hennessy Louis Vuitton, or LVMH — where Arnault is the chairman, and CEO — tumbling 5% lower to 834.2 euros, or $900, on Tuesday.
The Frenchman derives his wealth from a 97.5% stake in the luxury fashion brand Christian Dior holding company that controls 41.4% of LVMH.
Even after the one-day rout, Arnault's is still up by nearly $30 billion this year so far, per Bloomberg.
He has seen his wealth soar this year as LVMH's share prices surged on expectations that China's economic reopening after nearly three years of strict COVID-19 restrictions will lead to a robust demand for luxury goods.
In April, LVMH became the first European company ever to cross $500 billion in market valuation.
Arnault also became the third person ever— after Tesla CEO Elon Musk and Jeff Bezos, the founder of Amazon — to top $200 billion in net worth in the same month.
LVMH shares are about 23% higher so far this year.
LVMH did not immediately respond to an Insider's request for comment sent outside regular business hours.
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