World's richest person, Bernard Arnault, lost $11.2 billion in one day on fears of a weakening US economy impacting luxury goods demand.
LVMH founder, known for brands like Louis Vuitton and Christian Dior, saw wealth surge as European luxury company shares rose in 2023.
LVMH shares plunged 5% in Paris, the biggest drop in over a year, erasing around $30 billion from the European luxury sector.
Despite the decline, Arnault's net worth remains at $191.6 billion, with a $29.5 billion gain this year. The wealth gap with Elon Musk is now $11.4 billion.
LVMH's shares, up 23% this year, experienced a downturn after a prolonged rally. The MSCI Europe Textiles Apparel & Luxury Goods Index surged 27%.
Attendees at a luxury conference in Paris noted a "relatively more subdued" US performance, as stated by analyst Edouard Aubin from Morgan Stanley.
Deutsche Bank analysts predict investors will be more selective with European luxury stocks due to US growth concerns.