As the lockdown bogged down morale across the globe and created economic uncertainty, the financially well off turned towards luxury goods to ward off the gloom. The surge in sales of high-end watches, clothing, expensive bags and shoes, added to the fortunes of Moet Hennessy Louis Vuitton, which owns brands such as Bulgari, Christian Dior and Fendi.
But the wealth of its owner Bernard Arnault, which skyrocketed past $200 billion after the pandemic, has been cut down by $11 billion in a single day.
Sudden drop across the sector
This dip in his fortune has been caused by a 5 per cent drop in the stock value of LVMH, along with other pricey brands.
Arnault, who became the world's richest man thanks to consistent demand for luxury goods, is not alone, as shares of the firm that owns Gucci also dropped by 2 per cent.
Overall, firms selling luxury goods collectively lost $30 billion from their market value in a single day.
Headwinds hit major market
Although the beginning of the year brought cheer for high-end brands with the Chinese market reopening, concerns over recession affected demand in the US.
This is why the luxury brand stocks may have gone down despite the demand from Europe that defied headwinds.
But even after losing a huge sum in a day, Arnault hasn't lost his crown of the world's richest man, with his net worth of $192 billion.
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