LVMH’s softer third-quarter results signal a luxury market still under pressure. As the industry’s strongest player, it is preparing for a tougher cycle ahead.
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LVMH’s softer third-quarter results signal a luxury market still under pressure. As the industry’s strongest player, it is preparing for a tougher cycle ahead.
In a softening luxury goods market, meaning has become the new currency, reshaping demand, raising expectations and requiring brands to earn the right to be purchased.
The luxury market is experiencing a significant downturn, with Interbrand reporting a 5% drop in top brand valuations like Louis Vuitton and Gucci in 2025.
LVMH just delivered a blow to investors in first quarter, reporting a 3% organic revenue decline, including a 5% drop in its largest fashion and leather goods segment.
LVMH reported 3Q2024 ended down 3%, with Asia off 16% and Fashion & Leather Goods down 5%. LVMH called it a cyclical downturn but it may be bellwether of worse ahead.