LVMH, Hermès and Kering Shares Fall up to 40% Since January

Over the past three years, the luxury retail sector has experienced a steady decline following a brief post-pandemic boom, with most major players reporting lower-than-ever sales figures.

Since January, share prices of LVMH, Hermès and Kering have fallen 40 per cent, 39 per cent and 30 per cent, respectively, while Richemont remains roughly flat.

Valuations tumble after pandemic highs

The downturn reflects the Q3 performance of eight key luxury companies, including Burberry, Hermès, Kering, LVMH, Moncler, Prada and Richemont, as major luxury houses struggle with falling demand.

Third-quarter earnings across eight key players, Burberry, Hermès, Kering, LVMH, Moncler, Prada and Richemont, show softer client appetite. Entry-level and aspirational buyers cut spending sharply. Top-tier jewelry and watch assets held their ground better than leather goods and fashion apparel.

Richemont holds steady against fashion losses

Richemont avoided the valuation collapse that hit French fashion and leather houses. Its share price traded roughly unchanged over the period. Steady demand for high jewelry and fine timepieces insulated the group.

By contrast, fashion-heavy houses such as Kering and LVMH bore the brunt of reduced store traffic. Aspirational buyers drove volume growth for designer accessories and entry-level items during the post-pandemic rebound. They cut discretionary outlays as price hikes collided with tighter household budgets.

Shift in aspirational demand across core markets

Retail strategies face a reset after three years of contraction. Luxury groups spent the post-pandemic cycle raising prices on signature handbags and footwear. They wagered that brand equity would protect volume.

That pricing strategy has hit resistance. Brands dependent on repeat purchases from middle-income aspirational consumers are seeing foot traffic slow. Operators and department store landlords must now adjust inventory intake and floor space allocations.

Earnings filings show divided sector performance

The retreat began three years ago when pandemic savings cushions unwound and international travel normalized. Quarterly reports from Paris and Milan have since shown sequential decelerations across core product divisions.

Investors and retail operators now track upcoming full-year earnings from LVMH, Kering and Richemont. Those reports will show whether inventory adjustments and selective price freezes can stabilize revenue heading into the next fiscal cycle.