In many countries around the world, the demand for luxury goods has decreased significantly, which has affected the fortunes of billionaires.
French billionaires Bernard Arnault, Francoise Bettencourt Meyers and Francois Pinault have collectively lost $58 billion this year as demand for goods from LVMH, L’Oreal SA and Kering SA slumped, particularly in China. Bloomberg reported this yesterday.
Thus, the fortune of 88-year-old Pinault, who founded the Kering company, fell by 63% – to $22 billion. This is largely due to the problems of his most fashionable label, Gucci. The elder Pinault handed over control of the company to his son, 62-year-old Francois-Henri Pinault, nearly two decades ago. Despite promises to restore Gucci’s market position, sales declines were announced again this week for the third time in 2024.
Since the beginning of the year, Arnault’s fortune has fallen by about $26 billion, the most among the world’s 500 richest people, according to Bloomberg. It fell to fifth place in the index from first place as shares of LVMH Moët Hennessy Louis Vuitton SE, which was founded and is still controlled by Arnault, 75, fell 30% from highs reached in mid-2023.
The results of the cosmetics giant L’Oreal are disappointing – this year Bettencourt Meyers lost $19 billion, his fortune dropped to $81 billion. The 71-year-old heiress has been the richest woman in the world for years. This position is currently occupied by Alice Walton.
L’Oreal attributed the declines to worse-than-expected conditions in North Asia and China, where markets have become more critical, especially in the luxury sector. Despite the downturn, the company’s business remained “relatively good” in Europe, North America and emerging markets.
It was previously noted that the number of dollar millionaires in the world has risen to a record level. The largest increase in the number of millionaires was recorded in North America.
The number of billionaires in Russia has risen to a record level
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.