Europe's six biggest luxury groups have lost over €250bn in market value this year as China cools

Europe’s six largest listed luxury groups — LVMH, Hermès, Kering, Richemont, Prada and Moncler — have together lost more than €250bn (about £208bn) in stock-market value this year, according to an analysis published by The Telegraph on 1 November.

The China factor

The newspaper notes that not all of the losses can be blamed on China, but that lacklustre spending by Chinese customers is “a huge part of the problem”, as a new generation of shoppers turns away from Western status symbols. Third-quarter figures it cites:

• LVMH — owner of Louis Vuitton, Dior, Givenchy and Fendi — reported a mid-teens percentage decline in its fashion division in China.
• At Kering (Gucci, Saint Laurent, Balenciaga), sales in China fell 15–20%.

A long courtship

The Telegraph recalls how China had become central to the industry’s growth: by 2018 the country accounted for well over a third of global luxury spending. That November, Dolce & Gabbana’s planned Shanghai show — billed as the most expensive in its history — was cancelled hours before it began after an advertising campaign provoked outrage in China.

The analysis comes after a week of mixed third-quarter results across the sector, which Sardaana has covered, including declines at Kering and Hermès missing sales forecasts in China.