Luxury’s $25.5 Billion Stock Hit From the Coronavirus

The impact of the coronavirus is spreading — disrupting everyday life in Milan, curtailing shopping, tangling global supply chains and threatening the economy at large. The fallout on Tuesday was particularly visible in worldwide stock markets, which plummeted for a second straight day, sending the Dow Jones Industrial Average down 879.44 points, or 3.2 percent, to 27,081.36.  That amounted to a sharp two-day drop of 6.6 percent in the most visible gauge of the stock market and a sign of just how seriously investors are suddenly taking the outbreak.  For the fashion luxury sector, that downward pressure has translated into a $25.5 billion loss in market capitalization, according to a WWD tally of declines at 10 major luxury companies over Monday and Tuesday. The sector leader LVMH Moët Hennessy Louis Vuitton accounted for over half of that decline, logging a market cap loss of $13 billion since last week.  The stock rout has also served up big market losses for fashion and retail’s billionaire set.  In Tuesday’s sell-off alone, Amazon’s Jeff Bezos saw his fortune fall by $2.1 billion to $120.9 billion, followed by LVMH chief Bernard Arnault and family (down $1.4 billion to $99 billion), Zara head Amancio Ortega ($622 million to $72.4 billion),

Follow WWD on Twitter or become a fan on Facebook.

from WWDWWD https://ift.tt/32qgQ0K