Emmanuel OchayiJohann Rupert, Africa’s second-richest man and South Africa’s wealthiest man, net worth has plummeted by $3.7 billion in the past 90 days.
As of July 14, 2023, the 73-year-old business mogul held $14.4 billion, but the ongoing uncertainty in the luxury goods sector has taken its toll, bringing his fortune down to $10.7 billion – a substantial 25.6% decrease.
Rupert’s downturn is tied to the struggling luxury market, with the epicenter of the crisis being his 10.18% stake in the Swiss luxury giant, Richemont.
The conglomerate, known for brands like Cartier and Montblanc, saw its shares drop by 31.2% in the last three months, sending its market capitalization below $60 billion. This, in turn, dragged Rupert’s stake down to under $7.2 billion.
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The luxury market’s struggles extend to the sector’s titans, including LVMH, the world’s largest luxury firm. LVMH’s shares on the Euronext Exchange have fallen nearly 26% in the same period, making it drop from being Europe’s most valuable company by market capitalization.
This position was claimed by Novo Nordisk, a Danish pharmaceutical company, driven by its successful weight loss drugs.
According Forbes, The luxury market’s downturn is further exacerbated by economic challenges in China and a struggle to captivate U.S. consumers. LVMH and Richemont have reported weak performances in the United States, particularly due to “aspirational consumers” who limit their spending within lower price ranges.
It’s a challenging time for the luxury sector, with market giants grappling with a new landscape in the quest for prosperity.
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