Table of Contents
South African billionaire Johann Rupert, the chairman of luxury group Richemont, has seen his wealth fall by $800 million in just over a week as shares of the Switzerland-based luxury goods holding company slipped following fresh regulatory pressure in Europe.
Richemont dip shaves $800 million off Rupert
According to the Bloomberg Billionaires Index, Rupert’s net worth dropped from $18.5 billion at the close of business on Oct. 28 to $17.7 billion. The decline has trimmed his year-to-date gains to $4 billion from $4.8 billion earlier in the month. He remains South Africa’s richest person and the second-wealthiest on the continent, behind Nigerian industrialist Aliko Dangote.
Rupert’s fortune is tied to his stake in Compagnie Financière Richemont SA, the Swiss-based parent company of brands such as Cartier, Montblanc and Chloé. He owns about 10.18 percent of Richemont’s equity but controls 51 percent of its voting rights. Over the past week, Richemont’s shares have fallen by more than 2 percent, cutting Rupert’s stake to $12.3 billion.
Richemont’s Chloé hit with EU antitrust fine
The slide in Richemont’s share price comes after the European Commission fined its fashion label Chloé €20 million ($23 million) for breaching antitrust rules. Regulators said the French brand restricted independent retailers from setting their own prices—a violation of EU competition law.
The fine was part of a broader crackdown that also targeted Gucci and Loewe, which were fined €120 million ($137.9 million) and €18 million ($20.7 million), respectively. Although the penalties were reduced because the companies cooperated, the move underscores growing scrutiny of luxury firms’ pricing policies across Europe.
A Richemont spokesperson said the company had already set aside funds for the fine and stressed that the pricing practices in question had been discontinued. “We take compliance with competition law very seriously,” the spokesperson said.
Richemont feels pressure from cooling demand
The setback for Richemont comes amid broader challenges for the global luxury industry, which has faced slower sales growth this year as demand from Chinese and U.S. shoppers cools. For Rupert, whose fortune is tied to his Richemont, the recent drop highlights how sensitive even the world’s wealthiest investors can be to shifts in corporate reputation and regulatory action.
