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.
Join our WhatsApp ChannelRupert’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.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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