Eighteen months ago, LVMH shares were trading at a record high and the group’s controlling shareholder, Bernard Arnault, was the world’s wealthiest person. Fast forward to Wednesday and a slump in Chinese demand for Louis Vuitton bags, Dior gowns and other high-end fashion has wiped out more than €150 billion in LVMH market capitalization. Arnault’s wealth has been relegated to fifth place amid a downturn that’s dashed any prospect of a soft landing in luxury. The question for investors is how long the slump will last and whether the recovery will look anything like the good times that preceded it. For the first time since the second quarter of 2020, when the world went into lockdown, LVMH’s fashion and leather goods unit posted a drop in quarterly organic sales.