Billionaire Bernard Arnault, chairman and CEO of luxury giant LVMH Moët Hennessy Louis Vuitton, has lost $15.1 billion of his wealth in 2025 as global luxury markets face mounting pressures from a slump in Chinese demand and growing trade tensions in the United States.
According to Bloomberg Billionaires Index, Arnault’s net worth has declined by 8.6% this year, despite a modest $1.91 billion gain on April 12. The drop highlights deepening vulnerabilities in the luxury goods sector, traditionally viewed as resilient during global economic uncertainties.
LVMH — the world’s largest luxury conglomerate and owner of brands such as Louis Vuitton, Dior, and TAG Heuer — reported €84.7 billion ($91.6 billion) in revenue for 2024, with the U.S. accounting for a quarter of its earnings. However, since the inauguration of President Donald Trump for a second term on January 20, the company’s stock has plummeted by nearly 13%, contrasting sharply with France’s CAC 40 index, which rose 3% in the same period.
Analysts attribute the sharp decline to fears over fresh tariffs the Trump administration is expected to announce on April 17, targeting European imports. While the full scope of the trade measures remains unclear, the luxury sector is bracing for further impact. Arnault, once optimistic about Trump’s return, now faces investor skepticism despite previously praising the U.S. market as a major growth engine.
Compounding the situation is a significant contraction in Chinese luxury spending. Demand in China fell by 22% in 2024, as economic uncertainty and evolving consumer preferences drove a shift toward more affordable and practical products. Once seen as the backbone of global luxury growth, Chinese consumers are now curbing discretionary spending, affecting global luxury earnings.
The U.S. market, once considered a stabilizing force, is also showing signs of fatigue. Analysts warn of “luxury fatigue” as consumers grow wary of high price tags and a perceived stagnation in product innovation. Several luxury brands, including LVMH, have already scaled back profit projections for the first half of 2025.
Though some markets rallied when Trump temporarily delayed certain tariffs — excluding China — LVMH and other luxury stocks have yet to recover. Observers believe that even if tariffs are eventually softened, larger structural issues like slower global growth and changing consumer behavior will persist.
Despite the setbacks, LVMH remains a formidable player. The group is aggressively pivoting towards emerging markets in Southeast Asia, India, and the Middle East to diversify its revenue streams and reduce reliance on both China and the U.S.
Arnault, who briefly regained his spot as the world’s richest man earlier this year, now finds his empire navigating uncertain terrain, with resilience and reinvention at the heart of LVMH’s long-term strategy.
