Pointing to economic uncertainty and price increases, Bain says luxury consumers are spending and buying less. This comes as no surprise, in light of Q3 financial results for many of the largest luxury brands. For example, LVMH’s Fashion & Leather Goods division – which includes brands like Louis Vuitton, Dior, Celine, Loro Piana, and Loewe – saw a 5% drop in revenues in Q3 2024 compared to the previous year, despite a flurry of new releases, and limited-edition collections.
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Other luxury companies faced similar results. Kering – the parent company of Gucci, saw a 16% drop in Q3 sales compared to 2023, while Burberry’s revenues declined by 20%. Richemont, the owner of Cartier and Van Cleef & Arpels, also reported a 1% drop in revenues.
