Bernard Arnault, the French luxury goods magnate behind LVMH, has fallen out of the ranking of the world's ten richest people, as the list is now dominated exclusively by American billionaires, most of them from the technology sector.
Arnault's net worth dropped to $143 billion, according to the Bloomberg Billionaires Index, pushing the LVMH founder below Warren Buffett, the 96-year-old chairman of Berkshire Hathaway.
Elon Musk remains far ahead at the top of the list with a fortune of $918.8 billion, followed by other leading technology entrepreneurs including Larry Page, Jeff Bezos, Sergey Brin and Michael Dell.
It is the first time since Bloomberg launched its wealth index in 2012 that all ten top spots are held exclusively by Americans.
Since the start of the year, the 77-year-old Arnault has lost $65 billion, the largest decline among the world's 500 richest people.
War in the Middle East hits LVMH sales
The war in the Middle East has significantly affected LVMH's business, limiting demand in key markets such as Dubai for the group's fashion brands, including Dior, Louis Vuitton and Tiffany, as well as for high-end spirits such as Dom Perignon champagne and Hennessy cognac.
The company is also facing difficulties in China, one of its most important markets, where a legal dispute with a local tea producer has affected sales.
Shares in LVMH Moet Hennessy Louis Vuitton rose 0.5% in early trading in Paris on Friday. The previous day, the company had briefly lost its position as France's most valuable company by market capitalization, overtaken by L'Oreal.
Tech stocks drive US market gains
Meanwhile, the S&P 500 index of US stocks has gained 11% this year, with technology companies acting as the main driver of the rise amid growing demand linked to artificial intelligence.
Arnault had been on the list of the world's ten richest people since 22 March 2017, briefly even holding the top spot from December 2022 onward.
LVMH, or Moet Hennessy Louis Vuitton, is the world's largest luxury goods conglomerate, controlling brands across fashion, jewelry, spirits and cosmetics. Arnault was the first person outside North America, and the only tycoon from the consumer goods industry, to reach the top of the global wealth ranking; no one else has repeated that feat since.
A different era for luxury spending
That period was a different time for the luxury sector. Chinese consumers were driving sales growth, and companies such as LVMH benefited from pent-up demand after pandemic restrictions were lifted.
LVMH shares reached an all-time high in April 2023, but have since come under pressure due to weak demand in markets such as China, uncertainty caused by US tariffs, and falling alcohol consumption in some markets.
Arnault's fortune is now slightly above that of Jim Walton, a second-generation heir to Walmart.
Succession questions at LVMH
One of the most pressing issues facing the group is leadership succession. Arnault and his five children from two marriages, all of whom work at the company, are at the center of discussions about LVMH's future.
For the first time, all five children attended a shareholder meeting in April, when Arnault avoided answering a question about who would succeed him as chief executive.
