Bernard Arnault, chairman and chief executive of luxury powerhouse LVMH Moët Hennessy Louis Vuitton, has seen his net worth plunge by $15.1 billion in 2025, following mounting pressure on the global luxury goods market.
As of April 12, Arnault’s wealth had dropped 8.6% since the start of the year, according to Bloomberg Billionaires Index data—despite a modest single-day gain of $1.91 billion. The sharp decline reflects growing vulnerabilities in a sector once viewed as immune to economic uncertainty.
LVMH, the world’s largest luxury group—home to iconic brands including Louis Vuitton, Dior, TAG Heuer, and Dom Pérignon—posted revenues of €84.7 billion ($91.6bn) in 2024. A quarter of those sales came from the United States. However, the first 70 days of Donald Trump’s second term as US President have rocked investor confidence. Since Trump’s 20 January inauguration, LVMH’s share price has fallen nearly 13%, underperforming France’s CAC 40 index, which rose by roughly 3% in the same period.
The slide comes with renewed fears of US tariffs on European imports. While Trump is expected to unveil new trade measures on 17 April, uncertainty over their scope has already prompted a sell-off across luxury stocks.
Arnault had previously expressed optimism about Trump’s return to office, citing a “wind of optimism” and continued enthusiasm for European luxury in the American market. But those sentiments are now being tested as political rhetoric threatens to translate into economic headwinds.
Even before the resurgence of US protectionism, the luxury sector was showing signs of fatigue. China’s demand for luxury goods fell by 22% in 2024, driven by economic uncertainty and shifting consumer preferences. Once the industry’s growth engine, Chinese shoppers are now opting for more budget-conscious alternatives and prioritising savings over status.
In the United States, consumer fatigue is also setting in. Analysts have flagged a slowdown in discretionary spending, especially at the high end of the market. After years of post-pandemic splurging, many consumers are pushing back against premium pricing and questioning the pace of innovation across luxury collections.
LVMH and several other top-tier fashion houses have revised their profit forecasts for the first half of 2025, anticipating a period of tighter margins and more selective spending.
While recent market moves have raised concerns, LVMH remains well-positioned. Its diversified brand portfolio and global reach offer a degree of insulation from regional shocks. The group is accelerating its expansion into emerging luxury markets in Southeast Asia, India, and the Middle East, aiming to reduce reliance on China and the US.
Whether this strategic pivot will offset current market turbulence remains to be seen, but analysts note that the era of easy luxury growth may be over, replaced by a more complex and competitive global landscape.
