As demand for luxury goods and beauty products declines in some regions, so have the fortunes of a clutch of the world’s richest people.

The drop has toppled Bernard Arnault, 75, founder of handbags-to-Champagne conglomerate LVMH, from his No. 1 perch on the Bloomberg Billionaires Index.

And in a further sign of more frugal times, the heiress of cosmetics giant L’Oréal, Françoise Bettencourt Meyers, briefly lost her crown earlier this month as the world’s wealthiest woman to Alice Walton, a member of the founding family of US retailer Walmart.

The extent of the market downturn became glaringly apparent this week as the latest company earnings season kicked off with an unfolding crisis at UK luxury trench-coat maker Burberry Group and plunging sales at Swatch Group. L’Oréal, LVMH and other industry heavyweights backed by billionaires are scheduled to report their results later this month.

Overall, the fortunes of a half-dozen ultra-rich who derive their wealth from pricey products made for pampering have dropped by 4 per cent this year, or about $US17 billion ($25 billion) though Monday’s close, according to the index. That compares with a rise of 13 per cent, or $US1 trillion, for the rest of the 500-person ranking. The last time the gap between the two groups was this large was in May 2022.

The decrease masks disparities that have emerged across the sector depending on factors such as brand popularity and exclusivity. The losers are Bettencourt Meyers, Arnault and his longstanding rival Francois Pinault, 87, who founded Gucci-owner Kering. The French companies the trio control have also been hit by investor wariness of their home country after President Emmanuel Macron called a snap election that has resulted in a hung parliament and no government.

Downbeat outlook

Arnault’s wealth has fallen by $US7.4 billion over the past year to $US200.1 billion and now trails the fortunes of Tesla’s Elon Musk and Amazon’s Jeff Bezos. LVMH, the firm he built over more than three decades into a 75-brand juggernaut including couture house Christian Dior, jeweller Tiffany’s and Hennessy Cognac, reported markedly slower sales growth for fashion and leather goods in the first quarter and an overall decline in Asia, excluding Japan.

L’Oréal’s downbeat outlook for China has weighed on the wealth of Bettencourt Meyers, 71, who in December became the first woman with $US100 billion only to see her fortune drop to around $US91 billion. With high-end brands like Aesop, Lancôme and Yves Saint Laurent as well as the more affordable L’Oréal Paris, Garnier and Maybelline, the company in which she and her family have an almost 35 per cent stake is trying to navigate the slowdown across regions and price points.