
European Luxury Groups Shed €250 Billion as China Demand Slumps
Sales drops reaching 20 per cent across major fashion houses in mainland China trigger sharp equity losses and pressure retail operations across Asia.
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Sales drops reaching 20 per cent across major fashion houses in mainland China trigger sharp equity losses and pressure retail operations across Asia.

Mainland sales for the 25 largest luxury labels also tumbled across August and September, with executives fearing weakness could linger until 2027.

Richemont remains roughly flat as major luxury companies report lower sales across a three-year downturn following the post-pandemic boom.

Currency shifts diverting spending to Japan and weak domestic consumer confidence curb demand for high-end apparel and leather goods across mainland boutiques.

Total group revenue rose 1 percent to 18.5 billion euros, missing analyst forecasts as Chinese luxury spending deteriorated.

Wealthy Chinese face an October 22 deadline to settle back taxes on offshore trusts, curbing spending at LVMH, Kering and Hermes.

Asia excluding Japan generated 35 percent of fashion and leather revenue in 2025, leaving the French group exposed as Chinese consumers pivot toward beauty and jewellery.

Investment trends that propelled high-end apparel makers for 20 years are fading as luxury brands depend on a narrow group of ultrawealthy consumers.

LVMH shares touched six-year lows following an 11 per cent drop in September, hit by weakening sales across Asia ex-Japan and the United States.

The Artycapucines line will preview at Art Basel Paris on Oct. 23 ahead of a broader release spanning ready-to-wear and leather goods.

The sportswear giant is battling an 80 percent share price collapse and facing removal from the S&P 100 index after 18 years.

The Shanghai Grand Prix sold out quickly, but domestic labels continue to hesitate on major motorsport sponsorships.

The French luxury house pulled its presence from the regional market after facing consumer backlash over intellectual property litigation.

Consensus estimates point to fourth-quarter sales growth for Kering in Greater China, even after July luxury revenue across the market fell 10 percent.

The French luxury house will shut its sole Guizhou boutique on August 31, halving its southwestern store count from peak levels.

In the first quarter, LVMH reported revenues of €19.1 billion (US$22.4 billion), marking a decrease of 6%. This decline is largely attributed to various geopolitical tensions impacting business operations across the globe. Geopolitical Impacts on Revenue LVMH…
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