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European luxury's $350 billion blowout - Finance news and analysis from Global Banking & Finance Review
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European luxury's $350 billion blowout

Published by Global Banking & Finance Review

Posted on October 13, 2026

2 min read

· Last updated: October 13, 2026

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European Luxury Sector Suffers $350 Billion Decline as China Weakens

Luxury Market Downturn: Causes and Impact

By Alessandro Parodi, Tassilo Hummel and Samuel Indyk

PARIS/LONDON, Oct 13 (Reuters) - European luxury firms have seen some $350 billion in value knocked off their combined market capitalizations this year, as hopes of a sector rebound have faded and weakness in key growth engine China has persisted.

French fashion giant LVMH this week posted a larger-than-expected third-quarter sales miss in its key fashion and leather goods business, with China in focus. That dented luxury sector shares on Tuesday.

Visualizing the Downturn

Here are five charts showing the luxury sector slowdown.

Fashion Top 10: Non-Starter

The top 10 European luxury firms on the STOXX Europe Luxury 10 have lost around $350 billion in market capitalization since the start of the year.

Longer Decline

Europe's big four — LVMH, Hermes, Gucci owner Kering and Richemont — have seen their combined market cap nearly halve since around 2024. Richemont, more focused on watches and jewelry, has bucked the wider trend.

LVMH Boss Arnault Sees Fortune Dented

The slide, led by LVMH, has knocked billions off the wealth of French CEO and owner Bernard Arnault, Forbes wealth tracking data show.

LVMH Underperforms Peers

The French company, which owns fashion and leather goods brands Louis Vuitton and Dior, jewelry makers Tiffany and Bulgari and spirits brands Moet and Hennessy, has seen its shares fall over 40% this year, underperforming its luxury rivals.

China Weakness in Focus

China's Role in Global Luxury Spending

China has been a key focus. The huge Asian market, once the driver of growth in luxury spending globally, has lost ground amid a tougher economic backdrop.

(Reporting by Alessandro Parodi, Samuel Indyk and Tassilo Hummel; Editing by Adam Jourdan and Jan Harvey)

Key Takeaways

  • LVMH’s Q3 fashion & leather organic sales dropped 5% vs an expected 1.8% decline, dragging its overall organic growth to just +1%, below forecasts; Asia (mainly China) saw a 5% sales slide (live.euronext.com).
  • Collectively, Europe’s leading luxury groups—including LVMH, Hermès, Kering, Richemont—have lost nearly €330 billion (~$350 billion) in market cap this year; LVMH alone shed about $167 billion (live.euronext.com).
  • Hermès shares plunged 11% on weak China sales in Q2, wiping €19.7 billion off its market value in one day; still Richemont has shown resilience thanks to strong jewelry demand (investing.com)

References

Frequently Asked Questions

How much have European luxury firms lost in market value this year?
European luxury firms have lost around $350 billion in market value during 2024.
Which companies are the most affected by the luxury sector slowdown?
LVMH, Hermes, Kering (Gucci's owner), and Richemont are the main companies affected, with LVMH seeing a significant decline.
What impact has the China market had on European luxury brands?
China's economic weakness has been a major factor, reducing global luxury spending and contributing to the sector's slowdown.
How have LVMH shares performed compared to peers?
LVMH shares have fallen over 40% this year, underperforming its luxury rivals.
Has any luxury company avoided the broader decline?
Richemont, which focuses on watches and jewelry, has bucked the wider trend to an extent.

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