European luxury's $350 billion blowout

By Reuters News

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 LVMH.PA 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.

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 .STXLUXP have lost around $350 billion in market capitalization since the start of the year.

https://www.reuters.com/graphics/LUXURY-EUROPE/xmvjwjzwwpr/chart.png

LONGER DECLINE

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

https://www.reuters.com/graphics/LUXURY-EUROPE/klpyrmxyjvg/chart.png

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.

https://www.reuters.com/graphics/LVMH-LUXURY/lbpgxwqxjvq/chart.png

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.

https://www.reuters.com/graphics/LVMH-SALES/gkplejejdvb/chart.png

CHINA WEAKNESS IN FOCUS

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.

https://www.reuters.com/graphics/LUXURY-CHINA/BAIN-DATA/gkvlelymzpb/chart.png

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