The world’s wealthiest individuals, including Bernard Arnault, have collectively seen a significant drop in their net worth, totaling $5.7billion at the time of this report.
Arnault, Chairman of LVMH, leads the trio with a loss of $2.6 billion, followed by India’s richest man, Mukesh Ambani, who experienced a decline of $1.6 billion. Armancio Ortega, owner of Zara, also suffered a $1.5 billion loss on Tuesday, April 9, 2024, according to data from Forbes.
These fluctuations in net worth are attributed to changes in the value of their assets and stakes in various companies.
Notably, Arnault and Ortega operate within the fashion industry, where reports show investors anticipate a significant slowdown in luxury sales due to lackluster Chinese demand and challenging year-over-year comparisons. The upcoming first-quarter results of luxury giants like LVMH, Kering, Prada, and Hermes are awaited with anticipation, starting with LVMH’s report on April 16.
There are speculations on the impact of recent warnings from companies like Kering, which forecast a 10% decline in first-quarter sales, contrary to the expected 3% drop. JPMorgan’s prediction of flat overall sales for LVMH in the first quarter, with modest growth in its fashion and leather goods division, further contributes to the uncertain outlook.
Despite the challenges, global brokerage firm Morgan Stanley remains optimistic about the performance of companies like LVMH, citing potential re-rating opportunities across their business verticals.
Mukesh Ambani’s net worth decline is attributed to the performance of his conglomerate, Reliance Industries Limited (RIL), which saw a slight decline in share price following a previous surge. Despite the recent challenges, Morgan Stanley maintains a positive outlook on RIL’s stock, highlighting potential re-rating opportunities across its diverse business segments.
As of the time of publication, the combined net worth of Arnault, Ambani, and Ortega stood at a staggering $443 billion, reflecting the significant influence these individuals hold in the global economy.