LVMH CEO Bernard Arnault, who was recently crowned the world's richest man, wiped out $11.2 billion of his fortune in just one day.
LVMH, which is the parent company of more than 70 luxury brands such as Louis Vuitton, Christian Dior and Tiffany's, has seen Bernard Arnault's fortune soar over the past 12 months as its shares skyrocket.
However, those gains were pared on Tuesday when LVMH shares posted their biggest fall in more than a year by 5%.
Not only that, but the broader decline also wiped $30 billion from Europe's luxury sector, where Hermes International shares plunged 6.5% and Gucci brand owner Kering SA saw shares fall almost 3%.
This fall is seen as a result of concerns that the weak US economy will affect demand for luxury goods.
In the past year, the sector's rapid expansion in European stock markets has become what Big Tech is for the US, a collection of dominant businesses whose growth has endured despite economic uncertainty.
Despite having suffered huge losses, the French billionaire still maintains his position as the world's richest person with a net worth of $191.6 billion.
Even so, his wealth gap with Tesla founder Elon Musk, who is the second richest in the world, has narrowed to just $11.4 billion.
