Luxury Goods Sales Slump! Bernard Arnault's Wealth Erodes by Rp856 Trillion
The wealth of LVMH owner Bernard Arnault has reportedly shrunk sharply in line with the decline in luxury goods sales in the global market as geopolitical tensions persist unresolved. This situation has triggered a correction in LVMH shares, further eroding Arnault’s fortune.
The company recorded revenue of €19.1 billion, or approximately US$22.5 billion, in the first quarter of 2026. This figure reflects a 6% shrinkage compared to the same period the previous year (year-on-year).
Organic growth remained solid, posting a slight 1% increase. Unfortunately, this gain was eroded by a 7% strengthening of the US dollar exchange rate.
The fashion and leather goods division, the backbone of the company’s business, experienced a 2% contraction. LVMH oversees major brands such as Louis Vuitton, Christian Dior, Celine, Givenchy, and Rimowa.
In line with the weakening performance of the global fashion company, LVMH shares have plummeted around 26% since the beginning of 2026. This marks the worst start to the year in the company’s history, even deeper than during the 2008 financial crisis and the COVID-19 pandemic.
“The conflict in the Middle East is one of the main factors pressuring sales,” LVMH management wrote, quoted from Forbes on Monday, 20 April 2026.
The plunge in LVMH share prices has also eroded the company’s valuation, which now stands at €238 billion or approximately US$269 billion. This amount signifies a significant decline from its peak, which once reached a valuation of US$500 billion in 2023.
The decline in share prices has directly impacted Arnault’s wealth. The luxury goods tycoon’s fortune has shrunk by nearly US$50 billion, or approximately Rp856.9 trillion (estimated exchange rate of Rp17,140 per US dollar), causing Arnault to drop from the top position on Forbes’ Real-Time Billionaires List.
Arnault’s peak wealth once reached around US$233 billion, allowing him to top Forbes’ list of the world’s richest people multiple times between 2019 and 2024. Now, his coffers have shrunk to around US$151 billion, relegating him to ninth place among the world’s billionaires.
Looking ahead, market players will monitor the performance of other luxury goods issuers. This step aims to gauge the direction of the industry amid ongoing global geopolitical pressures.