Big gains in luxury spending helped LVMH boss Bernard Arnault overtake Tesla CEO Elon Musk as the world’s richest man earlier this year. At its peak, Arnault’s wealth was north of $200 billion, thanks to handsome returns on LVMH’s key brands including Christian Dior and Louis Vuitton.

His wealth has since dropped—he holds second-place in the list of billionaires now—and it stands to fall further as consumers bite the bullet by curbing luxury spending amid economic woes.

LVMH’s third quarter earnings, released Tuesday, reveal that shoppers are pulling back from indulging in luxury products—especially in the U.S. and Europe. The group’s sales rose 9% to €19.9 billion ($21.1 billion) during the period—a slower pace compared to 17% in the previous quarter.

“After three roaring years, and outstanding years, growth is converging toward numbers that are more in line with historical average”, LVMH’s CFO Jean-Jacques Guiony told analysts.

Revenue growth was slower in some of the conglomerates’ crucial divisions, including fashion and leather goods. Sales also slid 10% in wines and spirits, which LVMH said was a factor of “post-Covid normalization of demand and the continued high inventory levels of its retailers.” There were a few other factors that pulled earnings figures down, such as a stronger euro against the U.S. dollar.

COVID hangover

The easing pace of sales growth points to a correction in the luxury industry after the COVID-19 pandemic drove people to spend generously on high-end goods with their piled-up lockdown savings. LVMH benefited from it as the company saw its top line jump during the peak of the pandemic.

But signs that the appetite for luxury goods may be waning are becoming apparent—for instance, an index tracking 10 European luxury stocks including LVMH and British fashion house Burberry reported its biggest quarterly decline since 2020 earlier this week. Arnault’s company also lost its position as Europe’s most valuable company in September to Danish pharma giant Novo Nordisk.

LVMH, which is among Europe’s largest companies by market capitalization as well as a leader in the luxury space, is seen as a bellwether of sorts for the industry. LVMH’s results could set the tone for other brands, including Hermès and Kering, on their earnings due later this month.

UBS analysts said LVMH’s results “confirmed the ongoing normalisation in the sector, driven by weakening macro,” but said the company’s stock is the best one to own in the luxury space amid economic pressures.

“We continue to believe that LVMH’s best-in-class brand portfolio, the sound LT (long-term) fundamentals of the industry and its pricing power still position it as one of the best stocks to own in the sector in this uncertain context,” UBS analysts said in a note Wednesday, viewed by Fortune.

And for its part, LVMH is sure of its ability to bounce back and keep growing despite the headwinds.

“In an uncertain economic and geopolitical environment, the Group is confident in the continuation of its growth,” LVMH said in a statement Tuesday.

Ebbs and flows of Arnault’s wealth

The French billionaire has an estimated $169 billion in personal wealth now, per the Bloomberg Billionaires Index. But as the chairman and CEO of LVMH, his wealth is largely tied to the shares of the luxury conglomerate, including a 97.5% stake in Dior.

His wealth has fluctuated with the ups and downs of the luxury industry. Investor angst over the dampening economic prospects and high inflation have reflected on the stock price of luxury stocks like LVMH which, in turn, have hurt Arnault’s wealth. In May, for instance, the tycoon’s wealth plunged $11.2 billion in a day as the company’s share price took a hit.

But whenever the luxury company made strides, Arnault’s net worth was boosted, leading him to surpass Musk a handful of times in the last year. Between 2020 and 2021, the LVMH boss’ fortune more than doubled from $76 billion to $186.3 billion, according to Forbes’s estimate.

Although one of the 74-year-old executive’s five children, who already occupy senior roles in the luxury empire, are poised to take on the mantle from Arnault, he might stay on a little longer. Last year, LVMH extended the retirement age of its chairman and CEO from 75 to 80.